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Private consumption in Taiwan drops for third consecutive quarter

Xinhua | Updated: 2020-11-05 10:27
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TAIPEI -- Private consumption in Taiwan declined 1.51 percent year-on-year in the third quarter, continuing the downward trend seen over the first two quarters, the island's statistics agency said on Friday.

The agency attributed the decline to the drastic reduction of Taiwan consumer spending in overseas markets amid the COVID-19 pandemic.

Taiwan residents' overseas consumption dropped 93.35 percent year-on-year in the third quarter, the agency said in a press release.

However, since most locals were unable to travel out of Taiwan, local consumption was boosted by 5.09 percent year-on-year in the third quarter.

Private consumption in Taiwan dropped 1.55 percent in the first quarter and 4.98 percent in the second quarter, according to the agency.

The latest survey from the Research Center for Taiwan Economic Development showed the Consumer Confidence Index (CCI) in Taiwan weakened in October, down 0.5 points from September to 71.1 points, remaining in the pessimistic range.

Readings between 100 and 200 points suggest optimism, while those below 100 indicate pessimism.

The CCI consists of six sub-indexes, gauging investment in the stock market, consumer prices, purchases of durable goods, employment opportunities, the domestic economic outlook, and household economic conditions for the coming six months.

Among the six sub-indexes, five remained below 100 points and one -- measuring purchases of durable goods -- suggested optimism, according to the survey released on Tuesday.

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