Consumer Confidence Index Lowest In Past 50 Months

Center Economic and Business Poll says consumer confidence index last month was lowest in past 50 months

The Center Economic and Business Poll of the Thai Chamber of Commerce University has disclosed that the consumer confidence index in June was the lowest when being compared to the figures in the past 50 months. The factors which lowered the index included the oil price hike and the interest rate situation, and as a result, consumers slowed down their spending. However, the poll anticipates that the economic recovery can possibly take place during this year’s fourth trimester.

Mr. Thanawat Polwichai, the head of the poll, said the consumer confidence index has continued to go downhill for over the last six months. He stated that the continual high oil prices in Thailand and the rising interest rate have influenced people to hold up their spending, as they are more concerned with their costs of living. Besides, the political situation is still unstable. However, he said the economic recovery is likely to happen in the end of this year or the beginning of next year. The poll considers that Thailand’s export sector will continue to be the main source of revenue, while the tourism industry is expected to slow down.

Mr. Thanawat said the index at the moment is looking positive because of the Diamond Jubilee celebration and the World Cup 2006 tournament. These grand events have caused more financial circulations.

Source: Thai National News Bureau Public Relations Department - 13 July 2006