Political Turmoil Dampens Thai Consumer Confidence In May

[webfact]

Political turmoil dampens Thai consumer confidence in May

BANGKOK, June 5 – Thailand’s Consumer Confidence Index in May dropped for the first time in the six months since Dec 2011 to 77.1 from the 77.6 recorded in April, according to a survey by the Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce (UTCC).

Centre Director Thanawat Ponwichai released the survey Tuesday, saying that the overall consumer confidence index still remained below 100 due to concerns over political instability after the chaos which disrupted last week’s deliberation of reconciliation bills in the lower house of Parliament and protests outside the Parliament.

The index of the opinions of respondents regarding the political situation in May fell to 66.3, the lowest in the past 11 months, while the prospects for the index of the political situation in the next three months dropped to 76.6, the lowest in 12 months.

The survey showed that consumers were also worried about the debt crisis in the eurozone and the high cost of living, with the confidence index falling for the fifth consecutive month to 49.7, the lowest in 23 months.

The centre said the economy in the euro zone countries, particularly Greece and Spain, remains worrisome as the problem seems to be worsening and may affect Thai export’s sector, forcing a drop by 10-13 per cent from earlier projected.

The drop in oil prices was caused by lower global demand, reflecting the global economic slowdown, while the U.S. has been also impacted by the eurozone economies, the director said.

However, depreciation of Thai baht may help support Thai exports. It suggested that the government should focus on key Asian markets such as China and the ASEAN countries and commercial attachés should support the private sector to stimulate Thai exports. Meanwhile, Thai tourism, projected to generate an income of Bt650 billion, will help boost the economy.

The centre forecast public consumption likely to continue sluggish in the second quarter this year. The government should speed up implementing its fiscal and monetary policies through budget spending and offering loans to have more money in circulation, which will help prop up the economy, Dr Thanawat said.

If the political situation improves, Thai economy is likely to recover in the middle of the third quarter this year and is projected to grow 5.5-6 per cent, he said. (MCOT online news)

-- TNA 2012-06-05

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POLL

First decline in confidence index in 6 months

Petchanet Pratruangkrai

The Nation

BANGKOK: -- Thai consumer confidence dropped in May for the first time in 6 months due mainly to rising political instability, according to a poll.

Instability driven by conflicts in the reconciliation plans is a major attribution to the fall, said Thanavath Phonvichai, director of the Economic and Business Forecasting Centre of University of Thai Chamber of Commerce.

The poll shows that in the month, the confidence level fell from 77.6 points in April to 77.1 points in May. The drop was slight, but it marked the first time since December.

Thanavath said that consumer confidence is vulnerable to political instability. The increasing tension could further take toll on the confidence in the coming months, he added.

-- The Nation 2012-06-05

[Orac]

Who exactly are these consumers that have been surveyed - I doubt your average Big C shopper would have his/her finger on the pulse of the eurozone debt crisis.

[Moruya]

This has to be complete ball-cocks.

Its more than 6 months since the Rak Turnips assumed office ergo we are all rich and spending all our money on acres of flat screens for the wife and a gleaming Benz for hubby.

Sent from my dog.

[waza]

The survey showed that consumers were also worried about the debt crisis in the eurozone and the high cost of living, with the confidence index falling for the fifth consecutive month to 49.7, the lowest in 23 months.

How dare they write lies, Yingluck assured us this was a myth, the reality being the cost of living was declining.

[ginjag]

Yingluck ,eat your words, people have a certain ammount of money in their pockets each month. Whether your ex-pat or Thai if a price goes up you have 2 choices, do without or buy another brand. I went to Tesco and got my usual dog biscuits-20 kilos, was 720 now 820. Thais are eating cheaper food chicken feet,rather than chicken liver, more people in rural areas are rat shooting, trees are invaded more, out looking for honey comb, beatles, and local brew whisky is back with a vengence.

It's here that the government has to act, while local and central government can cream away, rural folk cannot.

[Yunla]

"I haven't seen the reconciliation bills but I believe every bill will benefit all groups of people." [Yingluck Shinawatra 2012]

I believe it is comments like this that that are dampening consumer confidence. Markets are also hypersensitive to government ineptitude and yahbah pill guzzling government bills that can only end in tears and madness.

Yingluck's statements including the one above lack the kind of pazazz, sparkle and basic canine intelligence that is required to keep consumer confidence up and markets steady.

[drdoom6996]

Who exactly are these consumers that have been surveyed - I doubt your average Big C shopper would have his/her finger on the pulse of the eurozone debt crisis.

And who in the Eurozone give a hoot in hell about Thailand? Stupid statement.

[allysajones]

Hi there, I think no country nowadays is having problem with there economy. Just like what I have read recently, according to a new Commerce Department report, defense cuts and low inventories are the cause of a contraction of the American economy in the final quarter of 2012. The GDP -- a.k.a., GDP -- dropped at an annual rate of 0.1 percent. You can pay for the things you need with a Payday Cash Loans for Every Need payday loan.