Thai consumer confidence hits new five-year low in June
Friday, 13 July 2007
BANGKOK, July 12 (AFP): Thailand's consumer confidence slid to a new five-year low in June amid concern over export growth as the local currency hit a fresh 10-year high against the dollar, researchers said today.
The consumer confidence index slipped to 76.8 points in June from 76.9 points in May, marking the lowest since March 2002, according to the University of the Thai Chamber of Commerce.
The index has been mired below 100, which indicates pessimism among consumers, for 35 straight months, it said, adding the Thai baht's rapid rise against the dollar was among key factors pressuring consumer sentiment.
The bath has continued to hit a new 10-year high against the US unit in line with brisk performance in the kingdom's stock market, which jumped to a 10-year high earlier in the month.
The strong baht makes Thai exports less competitive abroad and cuts the value of firms' repatriated profits. Exports account for 60 per cent of the Thai economy. The baht was traded at 33.39- 43 to the dollar in afternoon trade.
Thanawat Phonvichai from the university said confidence was also down as consumers were disappointed by the military-backed government's stimulus measures.
"Consumers were convinced that the stimulus packages were not effective in boosting the economy," Thanawat said. The packages included a two-billion-dollar loan scheme for low-income earners.
Hit by political uncertainty after last year's coup, the Thai economy is expected to rise a modest 3.8-4.3 per cent in 2007.
The confidence index is based on a survey of some 2,000 people nationwide.
The consumer confidence index slipped to 76.8 points in June from 76.9 points in May, marking the lowest since March 2002, according to the University of the Thai Chamber of Commerce.
The index has been mired below 100, which indicates pessimism among consumers, for 35 straight months, it said, adding the Thai baht's rapid rise against the dollar was among key factors pressuring consumer sentiment.
The bath has continued to hit a new 10-year high against the US unit in line with brisk performance in the kingdom's stock market, which jumped to a 10-year high earlier in the month.
The strong baht makes Thai exports less competitive abroad and cuts the value of firms' repatriated profits. Exports account for 60 per cent of the Thai economy. The baht was traded at 33.39- 43 to the dollar in afternoon trade.
Thanawat Phonvichai from the university said confidence was also down as consumers were disappointed by the military-backed government's stimulus measures.
"Consumers were convinced that the stimulus packages were not effective in boosting the economy," Thanawat said. The packages included a two-billion-dollar loan scheme for low-income earners.
Hit by political uncertainty after last year's coup, the Thai economy is expected to rise a modest 3.8-4.3 per cent in 2007.
The confidence index is based on a survey of some 2,000 people nationwide.