Taiwan’s consumer mood has strengthened sharply, with the country’s consumer confidence index climbing to its highest level in 18 months as sentiment toward stocks and housing improved.
The National Central University’s consumer confidence index rose 3.76 points to 68.77 in September, marking its second consecutive monthly increase. All six components of the index moved higher.
STOCKS AND HOUSING DRIVE THE IMPROVEMENT
The biggest monthly increase came from expectations about stock-market investment.
The index measuring whether the following six months would be a favorable period for investing in stocks rose 7.7 points to 35.42, its highest level in nearly a year.
NCU economics professor Yao Jui said earlier concerns that Taiwan’s strong first-half stock-market performance could be followed by weaker growth appeared to have been overstated. He pointed to record exports and export orders in August as factors that helped restore investor confidence.
Housing sentiment also recorded a major jump.
The index measuring whether it was a good time to purchase real estate climbed 8.81 points to 98.84, representing the second-largest monthly increase recorded for that measure.
Taiwan Realty Group executive Chou Ho-ming linked part of the improvement to the Central Bank’s September decision to ease selected credit controls, including raising the loan-to-value ratio for second-home buyers to 70%.
The central bank also kept interest rates unchanged for a 10th consecutive meeting, which Chou said helped reduce financial pressure and improve housing sentiment.
However, obtaining a mortgage remained challenging. Some borrowers were reportedly waiting about three months for funds to be released, while others could face delays extending into next year.
ONE AREA ISN’T RISING AS FAST
Despite the stronger confidence surrounding stocks and housing, consumers remained more cautious about buying durable goods.
The corresponding index increased only 0.64 points, considerably less than the rise recorded in housing sentiment.
NCU Research Center for Taiwan Economic Development executive director Wu Ta-jen attributed part of the difference to higher memory prices driven by AI demand. Rising component costs have pushed up prices for some consumer electronics, encouraging people without an immediate need to postpone purchases.
That creates an interesting split in Taiwan’s current economic mood: confidence is strengthening around financial markets and property, while some consumers remain cautious about spending on expensive goods.
For now, September’s numbers mark a significant improvement in overall sentiment.
But with housing demand responding to changing credit conditions and AI-related memory prices affecting electronics costs, the next question is whether Taiwan’s stronger consumer confidence will translate into broader household spending.
WWC ONE MEDIA G,A
