Consumer confidence falls to four-year low

Taipei--Taiwan's consumer confidence index (CCI) in January fell to its lowest level in four years amid a stagnation of the domestic economy, according to the results of a survey released by National Central University (NCU) on Thursday.

The CCI for January was 74.35, down 2.87 points from a month earlier and the lowest level since February 2013, when the CCI was 75.24, according to the survey by the university's Center for Taiwan Economic Development, which asked Taiwanese consumers about their spending plans and economic outlook for the next six months.

The index consists of six indicators that reflect confidence in consumer prices, the job market, family finances, overall economic climate, the stock market and possible purchase of durable goods over the next six months.

In January, all six sub-indexes fell, with the sub-index for confidence in the job market seeing the biggest decline, dropping 4.90 points to 100.9.

The second-biggest decline was recorded in the sub-index for confidence in consumer prices, which dropped 3.40 points to 45.40.

The sub-index on the timing of durable goods purchases was down 2.95 points to 85.00, while that for confidence in stock market investments dipped 2.80 points to 66.50.

The sub-index for family finances dipped 1.65 points to 76.90, while that measuring confidence in the local economy was down 1.50 points to 71.40.

According to NCU, a sub-index score of between 0 and 100 indicates pessimism, while a score of between 100 and 200 indicates optimism, meaning that the only area in which respondents had confidence in the next six months was the labor market.

The survey, conducted Jan. 19-21, received valid responses from 2,424 adults and had a margin of error of plus or minus 2.0 percentage points.

Source: Focus Taiwan News Channel