Despite various economic indicators showing signs of improvement in Taiwan, confidence in the local economy has fallen according to a survey released by Cathay Financial Holding Co. on Monday.
The survey revealed that November optimism indexes toward the economy today and over the next six months fell to -27.3 and -22.1 respectively, the lowest levels in three months, CNA reported.
The optimism index toward durable goods purchases over the next six months dropped to -23.7, the lowest level this year, while the optimism index for stock investment was down to -31.3, the survey found.
Asked about the factors most likely to impact the performance of Taiwan’s stock market next year, 38.2% of respondents pointed to the government’s financial and economic policies and 36.1% mentioned the speed and scale of US interest rate hikes.
Of the potential risks to Taiwan’s economy next year, 47.8% cited the government’s financial and economic policies, while 25.7% mentioned the outcome of the US presidential election.
Only 20% of respondents identified China’s economic situation as a risk factor.
The survey was conducted via e-mail to 18,713 customers of Cathay United Bank and Cathay Life Insurance from Nov. 1 to 7.
Taiwan’s export orders grew much less than expected in October, clouding hopes that the island’s economy can get a boost from seasonal holiday demand before Donald Trump becomes US president.
In October, orders increased 0.3% from a year earlier, well below a Reuters poll expectation for a 3.35% gain and September’s 3.9% annual growth.
