KReseach: Household economy hit the lowest point in 11 months

[webfact]

KReseach: Household economy hit the lowest point in 11 months

BANGKOK, 10 July 2015 (NNT) - Kasikorn Research Center (K-Research) revealed that the local KR Household Economic Condition Index (KR-EIC) was at 43.8 in June, the lowest point in 11 months.

It attributed the drop to the increasing living expenses, while revising down the KR-EIC figure in the next 3 months to 45.2 from 47.7, which would be the lowest figure in 13 months. The grim projection is backed by the fact that employment and income rates are still recovering, while the personal debt rate continues to rise. The center indicated that the factors holding back the household sector are the increasing commodity product prices, decreasing income and saving.

Despite the inflation rate being maintained during the first half of 2015, the private sector's spending has not yet fully recovered as the household sector still has diminishing purchasing power while the living expenses continue to rise.

Household debt had a slowdown growth rate in the first quarter, as consumers became more cautious on spending and financial institutes hardened their lending policies. Spending in the real estate sector grew only 1.7 percent over the quarter, K-Research expected the figure would reach 2 percent. The less-than-expected figure is due to the decreasing public purchasing power and the ailing economy.


-- NNT 2015-07-10

[mikemac]

Darn this government !

If we still had the PTP in power all Thais would be rich by now and I would be bludging off my wife's family................

[trogers]

Lowest point? Would it not mean a drastic fall in demand? So why have commodity prices not fall?

A look at the economic structures of corporates is needed. And KResearch is either choosing to keep quiet, or their knowledge in Econs 101 is lacking...

[bamnutsak]

This index, I think, is meant to measure changes, and project/predict (short-term) economic factors which influence primarily the middle-class here (90% own homes) and take into account formal debt, wages, savings, cost of living. Kasikorn probably uses internal data (of the customers) to calculate this index.

[quandow]

It's just getting plain expensive living in Thailand. I've been living pretty much the same life style over nine years here, the only thing I can think is that food must be going up. My rent has been the same, I hardly drive anywhere any more, I spend as much time with the ladies as I have in the past and generally consider myself lucky, having a good pension. I can't imagine how someone maintains a household on minimum wage. And the rich just get richer.

I posted a few weeks ago how in 2006 I used to be able to go out with friends & 5k baht. I'd have a nice meal, get laid, drink until the sun came up and stagger back home with money still in my pocket. Not any more . . .

[Mudcrab]

It's just getting plain expensive living in Thailand. I've been living pretty much the same life style over nine years here, the only thing I can think is that food must be going up. My rent has been the same, I hardly drive anywhere any more, I spend as much time with the ladies as I have in the past and generally consider myself lucky, having a good pension. I can't imagine how someone maintains a household on minimum wage. And the rich just get richer.

I posted a few weeks ago how in 2006 I used to be able to go out with friends & 5k baht. I'd have a nice meal, get laid, drink until the sun came up and stagger back home with money still in my pocket. Not any more . . .

You just need to go out later...say 3am and you could still do the same

the meal might not be so nice though.

Edited July 10, 2015 by Mudcrab

[trogers]

It's just getting plain expensive living in Thailand. I've been living pretty much the same life style over nine years here, the only thing I can think is that food must be going up. My rent has been the same, I hardly drive anywhere any more, I spend as much time with the ladies as I have in the past and generally consider myself lucky, having a good pension. I can't imagine how someone maintains a household on minimum wage. And the rich just get richer.

I posted a few weeks ago how in 2006 I used to be able to go out with friends & 5k baht. I'd have a nice meal, get laid, drink until the sun came up and stagger back home with money still in my pocket. Not any more . . .

Just assumed you are now having only Bt3,500 in your pocket now, and not Bt5,000.

This is the normal diminishing value of money when considering only an inflation rate of 3% pa for nine years.

[Nomad97]

Not so long ago you could buy 3 large bottles of cold beer Chang from your little corner shop and still get change from 100 Baht. Nowadays, its 156 Baht for the same.

[Chao Lao Beach]

Thai freinds who are working in factories that have alot of dopmestic sales are compnaing that they can't get OT now. They are all leveraged tot eh hilt as well. It sees that a fair % of their concidered income was from OT, now they are struggleing paying the monthly repayments.

Of course their answer is to as for a "loan" from Farlang wife............