World Economy

Taiwanese Lose Confidence in Economy

Taiwanese Lose Confidence in EconomyTaiwanese Lose Confidence in Economy

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.


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