Taipei: Taiwan's consumer confidence saw a slight increase in February, ending a four-month decline, as five out of six factors in the consumer confidence index (CCI) showed improvement from January, according to National Central University (NCU).

According to Focus Taiwan, the NCU's survey conducted from February 18 to 21 revealed a minor rise of 0.05 points in the CCI, bringing it to 72.59, following a significant 2.07-point drop in January. The CCI reflects consumer confidence over the next six months regarding consumer prices, the local economic climate, the stock market, the likelihood of purchasing durable goods, employment prospects, and family finances.

In February, the sub-index for the local economic climate experienced the most substantial increase among the six factors, rising by 0.57 points to 87.41. Additionally, the sub-indexes for the likelihood of purchasing durable goods, employment, and family finances increased by 0.3, 0.17, and 0.09 points, respectively, reaching 102.79, 75.78, and 82.63.

Conversely, the sub-indexes for consumer prices and the stock market experienced declines of 0.79 and 0.05 points, respectively, to 36.46 and 50.48. The sub-index for consumer prices dropped to its lowest since June 2024, while the stock market sub-index fell to its lowest since April 2024.

NCU Research Center for Taiwan Economic Development director Dachrahn Wu commented on the decline in confidence in consumer prices. He noted that last year's typhoon-induced increases in vegetable and fruit costs have heightened inflationary pressures on consumers. Wu also mentioned potential future increases in electricity rates and the impact of recent minimum wage hikes, suggesting a 2 percent rise in the consumer price index could become standard.

NCU's surveys indicate that a CCI sub-index score between 0-100 reflects pessimism, while a score between 100-200 indicates optimism. In February, the likelihood of purchasing durable goods was the only factor showing optimism.

An additional NCU survey with Taiwan Realty indicated a 0.31-point rise in the home buying index to 100.28, suggesting improved confidence in the housing market after the Lunar New Year holiday, which eased the credit crunch and facilitated mortgage access for homebuyers.

The February CCI survey collected responses from 3,051 Taiwanese consumers aged 20 and over, with a 95 percent confidence level and a margin of error of plus or minus 2.0 percentage points.