TAIPEI, Nov. 27 – Residents in Taiwan are feeling skeptical about future financial prospects as consumer confidence continues to drop for the seventh month in a row, according to a survey released Friday.
Based on a monthly survey by the “National Central University”, the consumer confidence index dropped 0.4 to 84.2 points in November from last month, a report from the university’s Research Center for Taiwan Economic Development said.
Taiwan consumers continue to show lower expectations for consumer prices, future income, investment and employment opportunities, but the drop was smaller than the previous month.
The index has been falling since May due to lackluster growth in the local economy. The island’s gross domestic product (GDP) dropped by 1.01 percent year on year in the third quarter this year – the lowest since the second quarter in 2009, when Taiwan was hit by the global financial crisis.
The index consists of six indicators to reflect what people think of the economy in the coming six months, reflecting expectations of consumer prices, stock market investment, employment, family income, local economic climate and purchase of durable goods.
Five indicators dropped but one increased this month, compared with reduction of all six indicators last month, which showed a slight improvement, the report said.
Among the indicators that dropped this month, the steepest decline was seen with investment potential in the stock market and the smallest drop for family income.
The only indicator that increased was regarding feelings toward the local economic climate in next six months.
A score ranging between 0 and 100 indicates pessimism while scores between 100 and 200 indicate optimism.
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