Confidence unaffected by southern car bomb

 

The Thai Chamber of Commerce (TCC) foresees significant economic recovery at the end of the second quarter this year with signs of further growth while believing that the southern car bomb will not affect the overall confidence.

Director of the Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce, Thanawat Polwichai, said the consumer confidence index in March 2012 rose to 76.6, increasing continuously for four months in a row and standing at the highest in six months. The improving confidence was a result of the recovering economy and businesses after the floods last year.

Moreover, consumers also hoped the economy and their incomes would improve in the future. Their confidence in the economy in the next six months increased for four consecutive months to 78.6, largely due to the minimum wage hike to 300 baht a day.

However, the director said consumers were still worried about many issues, such as economic recovery after the floods, the rising cost of living caused by high energy prices and political instability.

The confidence index on the economy in general grew for four consecutive months to 66.5, following the government’s approval of a 1.6-billion-baht budget for assistance measures for low-income people.

The TCC also forecast that consumer confidence would keep improving despite recent bombings in the southern economic zone of Hat Yai, Songkhla province. As for this year’s economy, the TCC assessed that it would significantly rebound from June onwards with a growth estimate of 5.5-6.5%.