Thai consumer confidence hits new five-year low in July
Friday, 10 August 2007
BANGKOK, Aug 09 (AFP): Thailand's consumer confidence fell to a new five-year low in July amid concern over high oil prices and pressure on exports as the baht held firm against the dollar, researchers said today.
The July consumer confidence index slipped to 75.8 points, the lowest since March 2002, from 76.8 points in June, according to a survey by the University of the Thai Chamber of Commerce.
"Confidence dropped because of concern over the strong baht, which affected exports and economic growth," it said in a statement.
Several Thai factories, including a leading footwear maker, were forced to close their businesses recently with the strong baht hurting its cost competitiveness in the global export market.
Since early July, the Thai baht has remained at near 10-year highs against the dollar, mainly driven by massive capital inflows into the kingdom's stock market.
"Consumer confidence is sagging with no sign of recovery," the pollster said, adding high oil prices and ongoing political uncertainty under Thailand's army-installed government continued to pressure sentiment.
Thai consumer confidence has remained below 100 for the last 37 consecutive months. A reading below 100 indicates that pessimists outnumber optimists.
The July consumer confidence index slipped to 75.8 points, the lowest since March 2002, from 76.8 points in June, according to a survey by the University of the Thai Chamber of Commerce.
"Confidence dropped because of concern over the strong baht, which affected exports and economic growth," it said in a statement.
Several Thai factories, including a leading footwear maker, were forced to close their businesses recently with the strong baht hurting its cost competitiveness in the global export market.
Since early July, the Thai baht has remained at near 10-year highs against the dollar, mainly driven by massive capital inflows into the kingdom's stock market.
"Consumer confidence is sagging with no sign of recovery," the pollster said, adding high oil prices and ongoing political uncertainty under Thailand's army-installed government continued to pressure sentiment.
Thai consumer confidence has remained below 100 for the last 37 consecutive months. A reading below 100 indicates that pessimists outnumber optimists.