Consumer Confidence at near five-year low

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Thai consumer confidence at near five-year low

BANGKOK (Thomson Financial) - Thai consumer confidence held steady at a five-year low in September on concerns over high fuel prices and lingering worries about the nation's tumultuous politics, pollsters said Thursday.

The consumer confidence index was at 75.8 points last month, almost unchanged from 75.7 points in August, according to a survey by the University of the Thai Chamber of Commerce.

The index has spent 38 months below 100, which indicates that pessimists outnumber optimists.

'The high price of petrol is the top concern of consumers, along with the rising cost of living. People are also concerned about the economy overall and their job opportunities,' said pollster Thanawat Phonvichai.

Even as the nation's political woes have eased since last year's coup, the survey found that consumers remain wary about the overall political situation.

'They said the political situation remains worrying,' Thanawat said.

'Even though consumers believe that the political and economic situation will improve after the general election, they are not yet ready to spend,' he told Agence France-Presse.

The military-installed government has promised to hold elections on December 23, clearing the way for an elected government to take office early next year.

The index is based on a survey of some 2,200 people nationwide.

Forbes Oct. 11, 2007

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Consumer confidence index edges up in Dec

Consumer confidence index in December continued to edge up despite concerns over the surging price of oil, product price hikes and the stronger baht, according to the University of Thai Chamber of Commerce.

Saovanee Thairungroj, deputy dean of the university's Research Department, said a survey on the consumer confidence conducted after the December 23 general election found the index on the overall economy increased to 70.4 from 69.3 in November, that on the job opportunities to 71 from 70.3, and that on future income to 90.4 from 89.1.

She said positive factors contributing to the rise in the confidence index include the recent election having taken place, the National Economic and Social Development Board's revision of its gross domestic product growth estimate for 2007 upward to 4.5-5 per cent, and the Monetary Policy Committee's decision to keep the one-day repurchase rate unchanged at 3.25 per cent.

At the same time, the export surge in November by a record high of 24.5 per cent to $14.61 billion, the recovery of the Stock Exchange of Thailand (SET) index and the steady movement of oil prices in December contributed to the confidence index increase.

However, the baht appreciation and the continue oil price rise which could affect the public's cost of living remain key negative factors in relation to the index.

Thanawat Palavichai, director of the Economic and Business Forecasting Center, said although the three confidence indexes were higher, they stayed below 100.

It showed consumers were still concerned with problems affecting the country's economy, particularly the oil price hike and the baht volatility.

He said the center forecast that the country's economy would grow 4.5-5 per cent this year. Its growth would gain clear momentum in the second quarter when the new government is expected to be actively administering the country. (TNA)

Bangkok Post Jan. 11, 2008

We bought a new car recently. With a financing over four years at 2.85 % the companies are trying hard to get customers.