The Research Center for Taiwan Economic Development at National Central University released Taiwan’s latest Consumer Confidence Index (CCI) for May on Tuesday. The report indicates that the CCI has declined for nine consecutive months, reaching a 13-month low, reflecting growing domestic concerns about future economic prospects.
The research center reported a CCI of 64.95 points, a decrease of 3.28 points compared to April. The survey evaluated six indicators, including price levels and employment opportunities, all of which saw declines. Notably, the indicator for the “stock investment outlook over the next six months” dropped by 11.82 points.
Director of the research center Wu Dachrahn (吳大任) explains that although the United States and China reached a preliminary consensus on tariff issues in early May, and the Taiwan Stock Exchange Index (TWSE) has rebounded to 21,000 points, consumers remain pessimistic about future developments in the economy and stock market.
Wu notes that although Taiwan has sought to mitigate the impact of reciprocal tariffs and taxes on semiconductors by increasing Taiwan Semiconductor Manufacturing Company's investments in the U.S., the Trump administration is unlikely to ease its tariff policy due to ongoing domestic financial pressures.
He points out that should a tariff rate below 20% be negotiated, it is still significantly higher than the 10% rate set during the 90-day buffer period the U.S. implemented before fully enforcing the policy. Wu says that this situation will directly impact Taiwan’s export-oriented economy, posing a serious challenge to its economic outlook over the next six months.