Consumers remain pessimistic in Typhoon Morakot's wake
Updated: 2009-08-28 07:46
(HK Edition)
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TAIPEI: Battered by tempest, flu and a struggling economy, the people of Taiwan cannot seem to shake their rather gloomy outlook on things.
Taiwan's consumer confidence index (CCI) in August dropped by 3.18 points to 53 points, staying well below the median of 100 points. The finding shows that the mood among consumers has become "more pessimistic", results of a survey revealed yesterday.
The index's six sub-indices, which reflex consumers' expectations in six areas of the economy over the coming six months, dwindled across the board in August when compared to July levels. Typhoon Morakot probably is the most significant factor in keeping consumers down in the dumps, according to the press release issued by the Research Center for Taiwan Economic Development (RCTED) under National Central University. The center undertakes the survey every month.
The six economic conditions surveyed are: 1. product price level; 2. family economic conditions; 3. employment opportunities; 4. business climate; 5. whether it is a good or bad time to buy stocks; and 6. whether it is a good or bad time to buy durable goods.
The six sub-indices all scored below 100 points - 100 points being "neutral", indicating that the overall economic mood of consumers is "relatively pessimistic". Scores in the range between 100-200 reflect a "more optimistic" mood among consumers.
Taiwan's CCI surged to a one-year high of 56.18 points in July - the same level as in July the previous year, the RCTED noted.
The No 1 sub-index concerning consumer product prices posted the largest monthly decrease of 13.55 points to 29.95 points in August. That's a record low for the category and the lowest point among the six sub-indices, the survey showed.
The research center ascribed the fall to the adverse effects of Typhoon Morakot, which lashed southern Taiwan early this month and which sent the price of vegetables, fruits and meat soaring in Taiwan's retail markets.
The No 5 sub-index asking whether the coming six months will be a good time or a bad time to buy stocks saw the second-largest fall of 3.2 points to 78.8 points for August.
The No 6 sub-index about whether it is a good time to buy durable goods also dropped by 1.3 points to 81.2 points for the month, according to the survey.
The No 3 sub-index concerning the job market stood at an historic low of 32.4 points, down by 0.7 points from July. Employment opportunities in the coming six months remain a major concern for the people of Taiwan.
The score related to prospects for family economic conditions and the business climate declined to 51.85 points and 43.8 points, representing a fall of 0.3 points and 0.05 points, respectively, the survey found.
The research center conducted the telephone survey from August 19- 22, questioning 2,308 citizens who are over 20 years old. It had a margin of error of 2 percentage points.
China Daily/CNA
(HK Edition 08/28/2009 page2)