Thai consumer confidence at five-year low
Friday, 14 September 2007
BANGKOK, Sept 13 (AFP): Thailand's consumer confidence index hit a fresh five-year low in August on concerns about the strong Thai baht, joblessness and high fuel prices, researchers said today.
Although political concerns eased last month, worries about the economy pushed the consumer confidence index down to 75.7 points, the 10 consecutive monthly decline.
The index has spent 37 months below 100, which indicates that pessimists outnumber optimists.
"This reflects that consumers continue to lack confidence in the general situation. Moreover, the index showed sign of further drops without any sign of a recovery," said the survey by the University of the Thai Chamber of Commerce.
Researchers said consumers are still worried about the strong baht, which makes Thai exports less competitive overseas. Exports drive the Thai economy, and a slowdown in that sector could slow down the nation's overall growth.
Consumers also worried that weaker exports could see factories lay off workers, as the cost of living is rising due to high fuel prices.
"Although confidence in the political situation improved following the approval of a new constitution in a referendum and the scheduling of elections for late this year, that failed to significantly lift consumer confidence," the report said.
The index is based on a survey of some 2,000 people nationwide.
Although political concerns eased last month, worries about the economy pushed the consumer confidence index down to 75.7 points, the 10 consecutive monthly decline.
The index has spent 37 months below 100, which indicates that pessimists outnumber optimists.
"This reflects that consumers continue to lack confidence in the general situation. Moreover, the index showed sign of further drops without any sign of a recovery," said the survey by the University of the Thai Chamber of Commerce.
Researchers said consumers are still worried about the strong baht, which makes Thai exports less competitive overseas. Exports drive the Thai economy, and a slowdown in that sector could slow down the nation's overall growth.
Consumers also worried that weaker exports could see factories lay off workers, as the cost of living is rising due to high fuel prices.
"Although confidence in the political situation improved following the approval of a new constitution in a referendum and the scheduling of elections for late this year, that failed to significantly lift consumer confidence," the report said.
The index is based on a survey of some 2,000 people nationwide.