Consumer confidence looks likely to continue its six-month slide after hitting a one-year low in June, according to the University of the Thai Chamber of Commerce.
Consumer Confidence in Thailand decreased to 74.40 In June of 2015 from 75.60 In May of 2015. Consumer Confidence in Thailand averaged 80.11 From 1998 until 2015, reaching an all time high of 112.40 In December of 2003 and a record low of 39.70 In October of 1998.
Accordingly Thanavath Phonvichai, director of the university's Economic and Business Forecasting Centre ,"Many negative factors crimped consumer confidence in the economic expansion, both internal and external. It seems consumer sentiment will continue to deflate in the following months as there are no positive factors to blow it up. Concerns are focused on the drought, global economic sluggishness after Greece defaulted and labour issues in the fishing industry.
With consumer confidence continuing to weaken, the economy has a high possibility of growing slower than the projection of 3-3.5 per cent, averaging 3.2 per cent, this year. Consumer confidence has been in free fall for half a year due to the plunge in crop prices, contraction in exports and slowdown in economic growth as well as the bad news about the drought, Greece's woes and the mess in the fishing business.
The centre's preliminary estimate of the damage to the economy from the drought is 0.1 percentage point. Exports would shrink by 1-2 per cent this year.
Based on the nationwide survey with 2,241 respondents, people also had reservations about spending their money on a new car, house or travel, or to start a new investment.
Consumer confidence to purchase durable goods and travel also dived to a one-year low. Consumers also expressed concern about global economic conditions and the high cost of living.
Source : The Nation