Taiwan consumer confidence drops in May

TAIPEI -- Taiwanese sentiment was gloomy over inflation, investment and economic prospects in May, according to the results of a monthly survey Thursday.

The consumer confidence index, which is based on a survey by the Research Center for Taiwan Economic Development, dropped 0.09 points from April to 78.11 points in May, ending three months of increases.

The index consists of six indicators reflecting what people think about the economy over the next six months, in terms of consumer prices, stock market investment, employment, income, the local economic climate and purchases of durable goods.

Four of the six indicators dropped this month, with the biggest decline in consumer prices, which fell 1.9 points from the previous month to 44 points, the lowest level since March 2000.

The sub-index for the job market was the only one to rise in May, posting an increase of 101.7 points, while income confidence stayed flat at 76.75 points.

An indicator between 0 and 100 indicates pessimism while scores between 100 and 200 indicates optimism.

The survey was conducted between May 19 and 23 with 2,421 valid questionnaires.