National Central University’s Research Center for Taiwan Economic Development announced on Thursday that the Consumer Confidence Index (CCI) in June increased by 0.49 points to 72.69. Recent stock market fluctuations have negatively impacted the score, but indicators related to the housing market remain optimistic.
Economics professor and President of the Research Center Dachrahn Wu (吳大任) elaborated that the stock market has been highly volatile recently. He said a stock market shock was observed in June, which caused a decline in investment confidence. He went on to say that although the six sub-indicators for the CCI have not changed a great deal, they continue to rise.
Wu said while the current consumer price index has remained around 2%, weather might impact prices in the latter half of the year. He said he believes economic downturns in the U.S. will result in the U.S. Federal Reserve cutting interest rates in the third quarter to boost consumption, affecting Taiwan’s export momentum.
Liou Ming-huan (劉名寰), director of the Emerging Market Study Center at National Taipei University’s Taiwan Institute of Economic Research, also commented. He pointed out that the impact of monetary policy usually is delayed for six months to a year. If the U.S. Federal Reserve does cut interest rates as predicted, the global economy should benefit.