Thai consumer confidence index falls to lowest in eight months

[webfact]

Consumer confidence index falls to lowest in eight months



BANGKOK: -- Consumer confidence index (CCI) for May 2016 plunged to its lowest level in a period of eight months, the University of the Thai Chamber of Commerce (UTCC) revealed yesterday.

Thanawat Polwichai, the director of the UTCC’s Center for Economic and Business Forecast, said CCI for May 2016 fell to 72.7.

This represented a sustained 5 month drop and is the lowest it has ever fallen in the period of 8 months since October last year.

He attributed the plunge in CCI to the slow recovery of the economy and consumer purchasing power.

He however asserted that consumers in the country are still hopeful that the economy, employment and income will eventually improve due to the massive public spending by the government for the latter part of the year.

Therefore he advised that the government sector should speed up budget disbursement so as to maintain the momentum of economic recovery.

With regards to the rise in global fuel prices, Mr Thanawat stated that this has brought about an added benefit for rubber planters as the market price for rubber has risen accordingly.

Rubber prices are now at 60 baht a kilo which is a significant improvement and will help the economic improve to a certain degree.

Source: http://englishnews.thaipbs.or.th/consumer-confidence-index-falls-lowest-eight-months/


-- Thai PBS 2016-06-10

[mtls2005]

Time to round up these "consumers" for an attitude adjustment.

Get NIDA on the horn, time for a new pollster.

[shirtless]

I thought things were so good , they did not have to adjust there interest rates down,

[worgeordie]

Consumers cannot keep on spending, when they are already

up to their eyes in debt.

regards worgeordie

[anon467848]

So the truth is finally coming out.... the prices of everything keeps going up, but salaries don't. It's a wonder how the average Thai gets by these days. Not much wonder that household debt is at record levels... The HiSo Thais couldn't give a shit about the state of the economy, they prosper on the weakness of others. Thainess...

[jadee]

The same story reported in the Bangkok Post gives the interesting statistic that 'shipments fell by 8% year-on-year to US$5.5 billion, with imports plunging 14.9% to US$4.8billion'. This shows the true extent of the problem and how ineffective and amoral the government's response it. Speeding up 'budget disbursement' will hardly make a dent. This is a clear example of the theory of 'structural violence' where people are prevented from meeting their basic needs due to the actions of institutions. It's the modern day equivalent of 'Let them eat cake'.

[streetsweeper]

There are not enough military or police or jail cells to deal with the discontented and suffering in Thailand.

I sure don't want to be around when the lid blows off the currently simmering pot!

I'd say that August will be a flash-point in Thailand's history.

The smell of Junta jitters is becoming ever so pervasive.

Edited June 10, 2016 by streetsweeper

[trainman34014]

Imports plunging 14.9% eh. No wonder i can't get my Tesco Bourbon biscuits for the last six months...Hard times !

[elgordo38]

Time to round up these "consumers" for an attitude adjustment.

Get NIDA on the horn, time for a new pollster.

No matter how bad the news they always throw that "hopeful" zinger in there.

[mike324]

So the truth is finally coming out.... the prices of everything keeps going up, but salaries don't. It's a wonder how the average Thai gets by these days. Not much wonder that household debt is at record levels... The HiSo Thais couldn't give a shit about the state of the economy, they prosper on the weakness of others. Thainess...

I think the main problem is the stupid tax the government has on everything making everything expensive and less affordable for the low to mid income, the other problem is that local businesses big and small wants to profit a lot....

[elgordo38]

Do not despair scroll up and read Mr. Somkid's glowing statement. Do not despair be of good cheer. I think you can also take comfort in the IMF statement on Thailand saying consumer debt is still low. Banks are full of money and paying us savers well lower rates by the week. They await you with open arms.

Edited June 10, 2016 by elgordo38

[Srikcir]

Rubber prices are now at 60 baht a kilo which is a significant improvement

Production costs have climbed to Bt64.50 per kg. So farmers face only a little loss.

Rubber farmers have been demanding the government push the price of rubber up to at least Bt80 per kg and preferrably to Bt94.50 that will enable farmers to make a 30-per-cent profit.

[Brer Fox]

Thanawat Polwichai, the director of the UTCC’s Center for Economic and Business Forecast says the government sector should speed up budget disbursement so as to maintain the momentum of economic recovery.

Someone needs to tell him there is no momentum of economic recovery. If there is any momentum it is downhill as consumer confidence indicates.

The economy is going down the gurgler. There is no foreign investment, there is very little domestic investment and the Thai smart money is going into investments in neighbouring countries.

Countries run by military juntas are hardly the best places to invest in. What is yours is more than half theirs.

[Winniedapu]

"He attributed the plunge in CCI to the slow recovery of the economy and consumer purchasing power."

So. The economy and consumer purchasing power are recovering but slowly. So naturally, when both are recovering, consumer confidence sinks to its lowest level in 8 months. Despite the government pumping billions into infrastructure projects to try and keep the economy afloat..

Did I get that right?

Winnie

[rubl]

"He attributed the plunge in CCI to the slow recovery of the economy and consumer purchasing power."

So. The economy and consumer purchasing power are recovering but slowly. So naturally, when both are recovering, consumer confidence sinks to its lowest level in 8 months. Despite the government pumping billions into infrastructure projects to try and keep the economy afloat..

Did I get that right?

Winnie

Not really.

Some things take more time than other things. Also the government may be pumping billions of Baht in infrastructure programs, but not the hundreds of billions which might make a difference.

Of course the referendum creates uneasiness just like the 'brexit' referendum in the UK is doing there now.

[jerojero]

And how is the massive government spending being funded? Where are the hundreds of billions coming from, that currently are being thrown at mega projects or useless submarines?

[spidermike007]

This economy is being very poorly run. That much is obvious to us all. There is little to no progressive thought, coming from this dullard administration. The lack of talent and creative juice is astonishing. All this while Vietnam, Malaysia, Indonesia and even the Philippines are making great strides, welcoming foreign companies and investors with open arms, and many incentives, and growing their economies, improving their infrastructure, and becoming more inviting places to live and invest.

Thailand is going to have to figure a way out of it's DEEP slumber. It is being left behind.

Here is my prediction for the near future:

1. Thailand will fall from it's current position as #2 within ASEAN, to #6, behind Malaysia, Indonesia, Vietnam, the Philippines, and Burma. Yes Burma!

2. Thailand's GDP figures will start contracting within the next year or so, and will continue contracting and falling over the next few decades.

3. The days of the tiger of SE Asia will begin to feel like a very distant memory.

4. Heads will roll, and changes will happen, but as usual, it will be too little, too late.

5. Property prices will begin to decline over the next few years, as will the currency.

6. Other than the buildup of Chinese tourists, the tourism numbers will continue to fall.

7. The stock market will contract also, as many major Japanese manufacturers will begin their exodus away from a country that offers little in the way of incentives, protection, property rights, and many of the advantages the above listed countries offer, or will begin to offer.