KResearch: Strong baht and global recession to impact consumer confidence

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BANGKOK, 3 May 2013  Kasikorn Research Center (KResearch) believes that Thailand is likely to see noticeable impacts of Bath’s appreciation and the global economic slowdown on Thailand’s Consumer Confidence Index (CCI) in the coming months. 

The Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce has recently reported that the April CCI dropped for the first time in 7 months to 83.7, down from 84.4 in March.

The confidence in the overall Thai economy and confidence index on future income also declined when compared to that of the previous month while the index on employment opportunities slightly increased.

KResearch believes that concerns over the appreciating baht and mounting signs of a global economic slowdown are important factors to impact the CCI in the coming months.

However, a growing domestic demands, the central bank’s close monitoring of strong baht, and relatively stable cost of living are factors that likely to continue to provide some counter balance to consumer mindset.