Taiwan consumer confidence hits 2.5-year low in August

8月 台灣消費者信心指數跌近兩年半以來低點

TAIPEI (Taiwan News) — Taiwan’s consumer confidence fell in August to its lowest level in nearly two and a half years, National Central University reported Wednesday.

The index slipped to 63.31, down 1.07 points from July and the weakest reading since May 2023, per CNA. Of six sub-indicators, only stock market confidence improved, while household finances, job opportunities, price levels, durable goods, and the overall economy all declined, per UDN.

Wu Ta-jen (吳大任), director of NCU’s Center for Taiwan Economic Development, said tariffs were the main factor. Taiwan faces a provisional 20% rate, higher than Japan and South Korea’s 15%, and businesses are expected to feel the strain.

The only bright spot came from equities, with confidence in the “timing for investing in stocks” rising 2.09 points to 31.2. Wu said the lift reflected record highs in Taiwan’s stock market, though tariff concerns kept overall sentiment weak.

Wu noted that expectations of US Federal Reserve rate cuts have buoyed equities in the short term. However, once tariffs take effect, exports may fall, hurting revenues and weighing on both the economy and markets.

The steepest drop was in “purchasing durable goods over the next six months,” which fell 2.04 points to 94.53. The housing index, compiled by NCU and Taiwan Realty, also slipped to 92.73. Both were at more than five-year lows, reflecting a cooling property market.