Thai Consumer Confidence Index Hits 4-year-low

Thai consumer confidence index hits 4-year-low

BANGKOK: -- Thailand's consumer confidence index dipped to a four-year-low in May and is likely to plunge even further amid concerns of continuing high global oil prices and an unresolved domestic political crisis.

The Economic and Business Forecast Centre of the University of the Thai Chamber of Commerce said the index continued in a downward direction for the fifth consecutive month in May when it stood at 75.5, from 76.7 in April, and now at its lowest level in 49 months.

The employment opportunity confidence index stood at 76.4 in May compared to 77.2 in April and this is the lowest in 42 months. The future income confidence index in May is 92.6 from 93.7 in April.

Centre director Tanawat Polwichai said the all time low indices indicate that the much-anticipated resurgence of the Thai economy won't materialise until the final quarter of this year, near the year-end, provided that general election takes place in October.

The current set of consumer confidence index figures is likely to plunge further with protracted anxiety about global energy prices, Thailand's political stalemate and concerns about the rising cost of living.

Mr. Tanawat said in June, the centre will revise the Thai economic growth forecast downward from the existing range in use of 4-4.5 per cent, incorporating fresh data on the impact of oil prices, investment and export activities, currency value and the global economic outlook.

--TNA 2006-06-08