Flooding Impacts Thailand's Consumer Confidence Index In August

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Flooding impacts consumer confidence in August

BANGKOK, Sept 8 - Thailand's Consumer Confidence Index (CCI) in August dropped to 73.8 from 74.4 in the previous month, the first decline in four months, thanks to severe flooding in the North and Northeast, according to a survey released on Thursday.

The drop in consumer confidence was attributed to the extensive damage to property and crops in the flood-stricken areas.

In addition, other negative factors affecting consumer confidence include concerns among consumers about the rising cost of living and goods at rates much faster than their incomes, according to a survey conducted by the University of Thai Chamber of Commerce (UTCC) Economics and Business Forecasting Centre.

The confidence index on job opportunities for the month fell to 74.4 from 74.9 in July. Consumer confidence regarding future income dropped from 102.1 to 102.8, the centre said.

Both consumers and businesses are feeling less confident as they remain uncertain on how the Pheu Thai-led government of Prime Minister Yingluck Shinawatra will translate its policy into action.

The latest forecast of Thailand's National Economic and Social Development Board (NESDB) which revised downward the country' gross domestic product (GDP) in 2011 to 3.5-4 per cent from its earlier forecast in a range between 3.5-4.5 per cent also dampened confidence among consumers who fear that the economy is growing at a slower pace against the backdrop of key interest rate hikes by the central bank.

Concerns over the fragile global economic recovery, in particular the eurozone debt crisis and the US public debt crisis, also helped drive consumer confidence down.

The survey shows, however, public confidence in the Thai economy, nonetheless stood above 100, indicating that the situation is not worrisome, according to the centre. (MCOT online news)

-- TNA 2011-09-08

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August Confidence Index Shows First Fall in 4 Months

The Thai Chamber of Commerce reports that consumer confidence index fell for the first time in four months in August due to concerns about flooding in several provinces and the weak global economy.

Director of the Economic and Business Forecasting Center of the University of the Thai Chamber of Commerce, Thanawat Polwichai said his agency's survey showed consumer confidence index dropped from 84.1 to 83.4 in August.

The plunge in consumer sentiment is the first time in four months.

This is because consumers were worried about economic repercussions from flooding in several provinces, the weak and uncertain recovery of the global economy, the higher cost of living and goods prices as well as the government's policies.

The survey also suggested confidence in the country's overall economy went down to 73.8 while that for employment opportunity fell to 74.4 and future income to 102.1.

Thanawat noted that his agency will revise the country's economic growth forecast again next month after the global economy showed signs of strain.

Five countries, namely the United States, Germany, Japan, the United Kingdom, and Italy, are likely to register a zero-percent economic growth that could affect Thailand's export and tourism.

He added the Thai economic expansion this year might slow to 3.5 to four percent from the agency's original forecast of four to 4.5 percent.

-- Tan Network 2011-09-08

[KRS1]

After living in Thailand for a long time, you start to realize that it floods every year and there is always a drought somewhere every year.

Nothing new.

[zzaa09]

After living in Thailand for a long time, you start to realize that it floods every year and there is always a drought somewhere every year.

Nothing new.

Of course. Which should lead one to understand that the extreme weather fluxuations and cycles have been ongoing forever, which really has nothing whatsoever to do with consumptive habits, less a politically designed ideal of a Consumer Confidence Index [whatever that is].