By Crystal Hsu /
Taiwanese consumers were more upbeat this month on the economy and spending, with optimism toward the stock market and risk appetite climbing to record highs, a sentiment survey released on Wednesday by Cathay Financial Holding Co (國泰金控) showed.The improvement in confidence came as a ceasefire between the US and Iran eased concerns over geopolitical tensions and helped lift global financial markets, the online survey of 13,227 respondents conducted from May 1 to 7 showed.Meanwhile, the government’s March business climate monitoring indicators remained in the “red” zone, signaling continued economic expansion.
People stand in line to pick up shareholder meeting souvenirs at a service center in Taipei’s Zhongzheng District on May 7.
Although leading indicators edged down slightly, coincident indicators continued to rise, suggesting growth momentum remained resilient, Cathay Financial said.Against that backdrop, the survey showed the public’s optimism index on the economy rose, while expectations for the economic outlook also improved.
Consumers appeared more willing to spend, as the index measuring willingness to make big-ticket purchases rose, while sentiment toward buying durable goods also strengthened, the survey showed.Despite the improving mood, inflation concerns remained elevated, and respondents were somewhat more cautious on growth and inflation. Respondents projected economic growth of 6.79 percent and inflation of 2.25 percent, with 58 percent expecting inflation to remain above the central bank’s 2 percent alert mark, the survey found.However, investor sentiment strengthened notably as local stocks rallied last month, thanks to strong earnings growth tied to artificial intelligence development, combined with easing geopolitical tensions. The survey’s stock market optimism index jumped to 45.5, while the risk appetite index climbed to 34.4, both reaching record highs. The survey showed growing interest among investors in participating in this year’s dividend payout season, as many listed companies are scheduled to hold shareholder meetings this quarter and finalize dividend policies.About 48 percent of respondents said they planned to participate in dividend and stock payouts this year, up from 37 percent last year, while only 7 percent expressed no interest.The findings suggested some investors might consider taking profit ahead of tax season to reduce income tax burdens. However, most investors indicated they do not plan to significantly reduce their holdings, as about 63 percent said they intended to maintain similar equity positions before filing income taxes, and about 20 percent said they might sell part of their holdings before tax season, slightly higher than the 15 percent recorded a year earlier, the survey found.
