Private firms confidence hits 25-month low

Tanakorn Sangiam

 

   

BANGKOK (NNT) - The new wave of COVID-19 cases in Thailand has reduced consumer purchases for Chinese New Year and Valentine’s Day to a 10-year low, while the confidence index among private companies measured by the University of the Thai Chamber of Commerce (UTCC) has plummeted to the lowest point in 25 months.

 

The UTCC’s Center for Economic and Business Forecasting (CEBF) has announced the Thai Chamber of Commerce Confidence Index (TCC-CI) for January 2021 at 29.8 points.

 

The low measurement of confidence among members of the private sector as reflected in the TCC-CI, is a result of COVID-19 containment measures, including a lockdown in the highest risk areas, which have disrupted several businesses, while the fast growing number of COVID-19 patients in the new wave has caused concerns among the public, affecting their livelihoods as well as business operations.

 

The CEBF says the low performing confidence index is also a result of the lowered economic projection by the National Economics and Social Development Council, now only 2.8 percent growth.

 

The private sector has however, seen the positive outcome of the government’s economic measures introduced from late-2020 until early 2021, which should help improve the general public’s purchasing power and circulate 300 billion baht in the economy, as well as help positive progress in COVID-19 vaccine procurement.

 

The UTCC President and CEBF Chief Advisor Thanawat Phonwichai, said today the pandemic concerns have resulted in lower purchases on Valentine’s Day, while travel restrictions still prevent the economy from performing at the same rate as in past years.

 

He said the prices of gifts and general items are are rising as this Valentine’s Day approaches, with 26.2% of customers saying they will purchase gifts for their loved ones, with 21.8% saying they will be buying flowers; meanwhile 15.4% say they will take their loved one to a restaurant or on a trip, while the average spending per person is estimated at 1,306 baht.

 

Most couples are expected to spend their Valentine’s Day at shopping malls, restaurants, and at home. The CEBF is expecting overall spending this Valentine’s Day to reach 2.56 billion baht, which will be a 21.15% decrease on the previous year, and the lowest in 10 years.

 

 

-- © Copyright NNT 2021-02-11

 

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19 minutes ago, webfact said:

while the average spending per person is estimated at 1,306 baht.

Average spending by Thais for valentines day is 1,306 baht ? Translated in min wages in my Uk that probably would be about £150-200 ! 'I don't believe it' as Victor would say