July 16, 2008
Bangkok - The consumer confidence index has plunged for the three consecutive months, according to University of the Thai Chamber of Commerce’s survey.
The confidence index was at 70.8 compared to 71.8 in May.
Consumers were affected by the skyrocketing oil prices. Concerns over higher cost of living, future income which would not be in line with expenses, and political stability were expressed.
World’s economy which can be affected by the subprime crisis in the United States also added pressure on consumers.
The employment confidence index fell to 71.1 compared to 71.8 in May while the income confidence index dropped to 92 compared to 92.8 in May.
The confidence index tends to decline more in July and August.
The domestic consumption is expected to delay until year-end and will improve next year if the political problem is solved.
5-5.5% GDP growth and 7.2-7.8% inflation were forecast.
Less consumers tended to buy new cars, houses, travel packages, and less investments were seen in the small and medium-sized enterprise market.
