Thai consumer confidence weakest in six months

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BANGKOK, July 4 – Thailand’s Consumer Confidence Index (CCI) dropped for three consecutive months to 81.6 in June, its lowest in six months, according to a survey by the University of the Thai Chamber of Commerce (UTCC).

The university’s Economic and Business Forecasting Centre reported today that the CCI index in June declined from 82.5 in May, while consumer confidence regarding the overall economy also tumbled from 72.8 in May to 71.8 in June.

Business and investment confidence declined in June due to a delay in the Bt350 billion water management project which has dashed investors’ hope of public spending at Bt60-70 billion to stimulate the local economy.

The Administrative Court has ordered the government to suspend the mega water project, pending environmental and health impact assessment and public hearings.

The global economic slowdown–especially in China, Europe and the US–has a negative impact on Thai exports, which declined by 5.2 per cent in June.

The phenomenon prompted several agencies to adjust their GDP growth projections, such as the Fiscal Policy Office, which has lowered this year’s growth forecast from 5.3 to 4.5 per cent, the centre indicated.

Despite a slower-paced inflation, consumers are spending less owing to higher prices of consumer products and heavier financial burden due to debt payment obligations.