April Consumer Confidence Index Falls; First Drop In Six Months

[george]

April consumer confidence index falls; first drop in six months

BANGKOK: -- Thailand's consumer confidence index (CCI) in April retreated to 79.9 from 80.7 in March, the first decline since November, according to a survey conducted by the prestigious University of Thai Chamber of Commerce (UTCC).

UTCC vice rector Saowanee Thairungroj said the survey also indicated that the economic confidence index declined to 73 in April from 73.8 a month earlier in response to the impact of rising oil prices, which had caused consumers to become worried over higher cost of living.

Consumers were also not comfortable with the prospects for political stability in Thailand in future, said Mrs. Saowanee.

Meanwhile, Thanawat Palavichai, director of the University's Economic and Business Forecast Centre, said the centre would monitor CCI closely for the next few months because there were signs that oil prices would continue to increase with the diesel price possibly jumping to Bt35 per litre, an increase of Bt5 since the beginning of the year.

If the projected further rises in domestic oil prices take place, it would force daily consumer expenses nationwide to as much as Bt350 million, Dr. Thanawat said.

If the situation remains unchanged, the confidence index for the following months would continue to fall, he said.

Dr. Thanawat urged the government to try to control oil prices from advancing too sharply, especially diesel, by reducing the contribution to the Oil Fund.

The Ministry of Energy should increase the price of liquefied petroleum gas on a gradual basis, he advised, while state-owned banks could offer loans for small, medium and large-sized enterprises. He also urged the government to more quickly invest in its mega-projects in order to push the Thai economy to grow at a 5-6 per cent pace as projected earlier, he added.

--TNA 2008-05-15