TAIPEI (Taiwan News) — Squeezed between fears of rising inflation and interest rate hikes, consumer confidence dropped to a 13-year low in October, reports said Thursday (Oct. 27).
The Consumer Confidence Index (CCI) fell by 1.37 points from September to end at 61.22, the lowest level since November 2009, according to a survey by the Research Center for Taiwan Economic Development at National Central University.
The only one of six factors composing the index which showed a rise over the past month was the expectation that consumer prices would no longer rise too fast. The five other factors, the stock market, the local economic climate, the state of family finances, employment prospects, and the possibility of buying durable goods over the next six months all showed a negative evolution, CNA reported.
The likelihood of investing in the stock market during the next six months fell by 3.2 points to 21.3 points, the lowest level the survey ever recorded. The state of family finances declined by 0.45 points to 73.15 points, a low not reached since January 2014.
Higher inflation and rising interest rates caused increases in household spending, while recent falls in the stock market also cut back alternative sources of income, National Central University researchers said. A likely drop in consumption in the United States, the European Union, and China would also cause Taiwan’s exports to slow down from their sturdy pace of the past year, according to the survey.
A total of 2,868 residents aged 20 and over gave valid responses to the university poll, with a margin of error of 2.0%.