Thailand's Consumer Confidence Index drops in January

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Thailand's Consumer Confidence Index drops in January
By Digital Content



BANGKOK, Feb 6 -- Thailand's Consumer Confidence Index declined in January as people doubted economic recovery and were concerned about the low prices of agricultural products.

Dr Thanavath Phonvichai, director of the University of the Thai Chamber of Commerce’s Center for Economic and Business Forecasting, said the Consumer Confidence Index fell from 81.1 in December to 80.4 in January and all indices in subsectors of the latest consumer confidence survey dropped.

Although oil prices declined, consumers still worried about the uncertain economic recovery, the low prices of farm products including rice and natural rubber, and weak exports and tourism. Consumers also questioned why goods prices were not lower despite declining oil prices, Dr Thanavath said.

Political stability began being challenged again and dry weather worsened, he said.

The government should invest in job creation to enable people to earn incomes, Dr Thanavath said. The government must work hard on this matter, he said.

Surveyed consumers thought this week's bombing at Bangkok's Siam Paragon shopping center would have only a temporary and slight impacts on their spending decisions but should not affect the national economy. (MCOT online news)

-- TNA 2015-02-06

[NongKhaiKid]

The only thing missing from this piece is the usual assurance that confidence etc will go through the roof as the year unfolds.

However, maybe just maybe the uni's team are sensible and would rather wait and see rather than jump in head first with wild TAT like predictions..

[Mr Yim]

Clearly Dr Thanavath Phonvichai is wrong and needs an invite to a military base to have his attituded adjusted.

[rickirs]

"The government should invest in job creation to enable people to earn incomes, Dr Thanavath"

The frustration of the Thai business sector is building into a panic!

Despite the Junta being in power for seven months, there is a concensus in the business sector that urgent government stimulus spending is needed. A week ago Don Nakornthab, director of the Bank of Thailand Macroeconomic Policy Office called for "massive government investment on basic infrastructure projects" as the private sector stagnates. At the same time Kritsada Jinavijarana, the director-general of the Fiscal Policy Office predicted that the baht will fall to 33.06 baht per USD due to deflation unless there is "massive government spending in infrastructure projects ..." On the same day Chantana Sukumanont, an adviser to Siam City Cement, said, "If there's no ground-breaking [on government investment projects], I do not believe in anything. One recommendation I have for the government is to 'just do it'. There's enough talk already,"

However, the Junta seems adverse to stimulus spending despite Thailand's low debt to GDP rate. The Junta's biggest infrastructure to date, the dual rail system, is being financed largely (80%) by the Chinese and not self-financed by Thailand. Good for China, useless to the immediate Thai economy. The Junta is free with the Treasury when it comes to giving out low budget "gifts" in the form of short-term subsidies, grants, and consumer product price reductions but when it comes to making serious stimulus investments, the Junta only offers committees, plans, and promises.

Gen. Prayuth has stated, "I don't want to create a burden. There is no debt. Only one year [in power], I will do what should be done." His NCPO advisor Somkid Jatusripitak believes gross domestic product should grow on its fundamentals, not from an injection of capital. Prayuth's Finance Minister Sommai Phasee believes that capital spending is something only Thailand's neighbors need. Destruction of the Thai economy is as much a form of corruption as is a bribe or embezzlement. If the Junta can't pull Thailand back from its economic brink, perhaps it should re-examine its place in Thai society.