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Trump's Impact! March Economic Signals Flash Yellow-Red, Stock Market and Consumer Sentiment Weak

Trump's Impact! March Economic Signals Flash Yellow-Red, Stock Market and Consumer Sentiment Weak

The National Development Council (NDC) released the March economic signal on the 28th, maintaining a yellow-red light but showing a decline in the comprehensive judgment score. Simultaneously, the consumer confidence index for April hits a new low for the year, reflecting the pressure on public sentiment caused by uncertain tariffs and soaring prices.

As Mother's Day approaches, bakeries are launching various limited edition desserts in advance, but cake prices are struggling to return to normal due to inflation. For example, the cost of commonly used fermented butter was about 4,800 NT dollars two years ago, now skyrocketing to over 10,000 NT dollars; Belgian chocolate has also surged from 4,500 NT dollars to 10,500 NT dollars due to port congestion and climate issues.

Other raw materials such as salad oil and flour are also gradually rising, leading businesses to raise cake prices by approximately 20 NT dollars each, accumulating nearly a 50% increase over their operational period. One vendor admitted they initially hoped to absorb the costs, but since the beginning of the year, the pressure of rising prices has become unbearable.

With raw material costs doubling and consumer pressure mounting, public confidence is similarly affected. The latest statistics show the April consumer confidence index dropped to 68.21 points, reaching a new low in nearly a year, with all six survey indicators declining. The NDC has announced that the March economic signal remains yellow-red, but due to pre-ordering and a reduction in export orders, the comprehensive score decreased by 3 points this month, and the manufacturing sector's confidence shifted to a weaker yellow-blue signal.

NDC’s Economics Department Director Chiu Chiu-Ying pointed out that the decline in export order trend indices in leading indicators also affected financial and confidence indicators, highlighting the continued uncertainty in the economic situation. With soaring prices and unclear economic outlook, the public's purchasing power and confidence are both under pressure, making the future direction of the consumer market a focal point of concern.