Thailand’s Consumer Confidence Index in February drops 1st time in 4 months

BANGKOK, March 11 (TNA) – Thailand’s Consumer Confidence Index (CCI) in February dropped for the first time since November last year, according to a survey conducted by University of the Thai Chamber of Commerce (UTCC).

The CCI in February fell to stay at 78.4, which was the 67th consecutive month it was under 100, according to Dr Sauwanee Thairungroj, UTCC vice president for research.

One factor causing a drop was consumer worry about Thailand’s economic situation, which could worsen due to the Red Shirt demonstrations this month.

Other factors included possible higher fuel prices and costs of living, which remained high in consumers’ views and could have a negative impact on future unemployment.

The current CCI stands at 65.2, indicating that the Thai economy has not yet much recovered, while opportunities and access to employment are still low. The future CCI in the next six months stays at 81.8, the first drop in four months, showing consumers’ concerns on the ongoing political instability.

The UTCC Center for Economic and Business Forecasting projected that the direction of public consumption tended to improve continuously, for the consumer index was signaling improvement in the long run despite drops in all types of indices for the first time in four months.

If the political situation eases up without violence this month and in April and consumers are careful in their short-term spending, the CCI will adjust positively at the end of the second quarter.

However, if the situation turns violent or politics continually lacks stability in the first half of this year, the Thai economy’s 2010 performance is likely to grow around 2-3 per cent, from 3.5 – 4.5 per cent projected earlier. (TNA)