Taipei: Taiwan's consumer confidence index (CCI) recorded its lowest level in over two years this August, as five of the six key factors within the index experienced declines from the previous month, according to a report by National Central University (NCU). The decline is attributed to apprehensions regarding the impact of U.S. tariff policies.

According to Focus Taiwan, NCU's survey, conducted from August 18 to 21, revealed that the CCI decreased by 1.07 points to 63.31, the lowest since April 2023, when it was at 63.18. The CCI evaluates consumer sentiment across six areas for the forthcoming six months: consumer prices, the local economic climate, the stock market, durable goods purchases, employment prospects, and family finances.

The survey indicated that five of these six areas experienced declines in August. Specifically, the subindexes for durable goods purchases, consumer prices, and family finances decreased by 2.04, 2.02, and 1.5 points, landing at 94.53, 30.72, and 75.15, respectively. Additionally, the subindexes for the local economic climate and employment prospects fell by 1.48 and 1.41 points, reaching 79.17 and 69.12.

In contrast to the overall downward trend, the stock market subindex rose by 2.09 points to 31.2 in August. Dachrahn Wu, director of the NCU Research Center for Taiwan Economic Development, explained that the U.S. tariff policies, which introduced a 20 percent levy on Taiwan earlier this month, have generated concerns about potential harm to export growth momentum, company profitability, and broader economic stability.

Wu also commented on the stock market subindex, attributing its rise to optimism about potential interest rate cuts by the U.S. Federal Reserve, which have recently elevated share prices. However, he warned that possible economic weaknesses could negatively impact the stock market in the future.

NCU explained that a CCI subindex score between 0 and 100 indicates pessimism, while scores ranging from 100 to 200 signify optimism. As of August, none of the factors achieved optimistic levels. The university's CCI survey for August gathered responses from 3,135 Taiwanese consumers aged 20 and older, with a 95 percent confidence level and a margin of error of plus or minus 2 percentage points.

Additionally, an August survey conducted jointly by NCU and Taiwan Realty revealed that the home-buying index dropped by 1.75 points month-on-month to 92.73, marking its lowest point in five years.