Thailand’s Consumer Confidence Index on present economy increases for 8th consecutive month

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BANGKOK, Aug 3 – Thailand’s Consumer Confidence Index (CCI) ‘on the present economy’ has increased for the 8th consecutive month from 56.8 in June to 57.3 in July, reflecting an improved Thai economy after last year’s flood, a professor of the University of Thai Chamber of Commerce (UTCC) Centre for Economic and Business Forecast said today.

Wachira Khuntaweetep noted, however, the CCI to the overall economy last month lowered slightly from 68.5 to 68.2, for consumers lacked confidence on the country’s economic situation due to internal politics and fluctuations of the world economy.

The July CCI regarding the economy in the next six months, meanwhile, was downgraded from 80.2 to 79.1, reflecting consumers’ views on possible risks of the Thai and world economies, particularly influenced by political instability and the eurozone debt crisis, respectively. The cost of living tended to continue at a high level.

Meanwhile, Centre for Economic and Business Forecast director Thanawat Polvichai commented that the overall confidence index for July would result in lower confidence among consumers in the future, meaning a dull Thai economy.

Negative factors leading to a lowered future consumer confidence index included the Bank of Thailand (BoT)’s adjusted prediction of the country’s economic growth this year to 5.7 per cent, from the previously expected 6, and on next year’s growth at 5 per cent, from the earlier forecast of 5.8 per cent.

Other factors covered included a worsening European debt crisis, causing negative performance figures for Thai exporters, internal political instability, higher oil prices, concerns on likely flood situations, and unsatisfactory prices for agricultural produce.