Consumer confidence hit a record high in February, a sign of improving sentiment toward local economic fundamentals. That’s according to a survey released by National Central University on Monday.
The local consumer confidence index (CCI) for February rose 1.21 points from a month earlier, to 89.44. A reading above 100 generally indicates optimism, while a reading under 100 signals a more pessimistic outlook. Therefore, even though this is the highest figure in history, consumer confidence is still relatively pessimistic.
Five out of the six CCI sub-indices showed signs of improvement. Those five were: confidence in employment, the local business climate, family finances, consumer prices, and the timing for investment in the equity market. The index that fell was confidence in the timing for buying durable goods.
National Central University said that the slip in consumer confidence towards buying durable goods is a reflection of the wait-and-see sentiment in the real estate market. That was brought about by the Cabinet’s newly proposed housing and real-estate tax reforms.