Consumer confidence plunges first time in 4 months

BANGKOK, 11 March 2010 (NNT) – February’s consumer confidence index stands at 78.4% which declined for the first time since November last year, according to the University of Thai Chamber of Commerce (UTCC).

UTCC Vice Rector for research affairs, Saowanee Thairungroj, said the consumer confidence has been moving under the 100 mark for 67 consecutive months as consumers are still concerned about the economic situation susceptible to a crash under the current political instability. The oil price which is likely to increase and the high cost of living also play vital roles in influencing future unemployment rates.

At present, the consumer confidence stands at 65.2, showing the public are not fully convinced of the economic improvement. The index projection for the next six months is at 81.8, decreasing for the first time in 4 months and reflecting consumers’ concern over political uncertainty.

The UTCC Center of Economic and Business Forecasting has predicted that consumption will continue to adjust up despite the fall of every index. The consumption would improve in the second quarter of this year if the political situation develops without violence by April and the consumers are more cautious about their short-term spending. Unstable and restive situations may lead to the economic slowdown with only 3% growth or lower this year.