Thailand marks first Consumer Confidence Index rise in four months

BANGKOK, June 10 (TNA) – Thailand’s Consumer Confidence Index (CCI) in May increased to 75.5 for the first time since February, a University survey found, a rise of 0.5 from the previous month.

The Thai Chamber of Commerce Center for Economic and Business Forecasting surveyed 2,222 respondents nationwide at the end of May when the country’s political turmoil began to ease.

All consumer confidence indices on Thailand’s future have improved, but the political turmoil impacted tourism, while drought affected farm outputs and living conditions, lowering the CCI on the current situation for the fourth consecutive month.

Thanawat Polwichai, the center’s director said overall poll results indicated that consumer confidence, which has improved, indicated the expectations of the public. It also depends on implementation of the national reconciliation plan. If the attempt fails and politics lacks stability, consumer confidence will drop.

Dr Thanawat said the government should speed up disbursement of the budget for the economic stimulus plan and oversee the baht to stay below 32.50 baht against US dollar, otherwise it may affect exports and tourism.

The policy interest rate should be kept at 1.25 per cent per year for the whole year.

It is expected that during the FIFA World Cup, up to Bt2.2 billion not related to football gambling will be circulated, public concern will ease and economic confidence will rise.

The CCI improved due to eased political tensions, economic growth in the first quarter of the year and a drop in oil prices in May. (TNA)