Taipei, Dec. 29 (CNA) Taiwan's consumer confidence weakened in December as uncertainty over tariffs persisted and negotiations with the United States had yet to reach a conclusion, National Central University (NCU) said Monday.
According to a survey conducted between Dec. 18 and 21, the consumer confidence index (CCI) fell 0.35 points from a month earlier to 64.3 in December.
The CCI measures sentiment over the next six months across six factors: consumer prices, the domestic economic climate, the stock market, durable goods purchases, employment prospects, and family finances.
In December, the subindex on durable goods purchases suffered the steepest decline, falling 1.06 points from a month earlier to 95.94. Subindexes on the stock market, the domestic economic climate and employment also fell by 0.65, 0.38 and 0.05 points, respectively, to 26.37, 81.39 and 71.6, the survey showed.
Bucking the overall downturn, the subindex on family finances rose 0.05 points from a month earlier to 77.68 in December, while the subindex on consumer prices also gained 0.03 points to 32.82, the poll found.
Speaking with reporters, Dachrahn Wu (吳大任), director of the NCU Research Center for Taiwan Economic Development, said consumer confidence failed to improve despite the government and several research institutions raising their forecasts for Taiwan's economic growth to above 7 percent in 2025.
Wu said that with tariff talks with the U.S. still ongoing, many consumers remained cautious about how the so-called "reciprocal" tariffs would be finalized.
In particular, he said consumers were wary of the possibility of tariffs on semiconductors, which form the backbone of Taiwan's exports, under Section of 232 the U.S. Trade Expansion Act.
Wu noted that although strong growth in tech exports is expected to drive economic expansion in 2025, the electronics industry employs only about 1 million people, compared with roughly 11 million workers nationwide, while traditional industries continue to report furloughs.
He said he expects the tariff negotiations to conclude in the first quarter of next year, with Taiwan likely being asked to invest large sums in the U.S. market in exchange for lower tariffs, a move that could squeeze investment at home.
Also in December, the home-buying index jointly compiled by NCU and Taiwan Realty fell 1.63 points from a month earlier to 92.63, the university added.
The December CCI survey collected 2,977 valid responses from Taiwanese consumers aged 20 and older and has a confidence level of 95 percent with a margin of error of plus or minus 2 percentage points.
