BANGKOK – The University of the Thai Chamber of Commerce has reported that Thailand’s consumer confidence index (CCI) has dropped to an annual low due to the effects of the royal decree on foreign labor management, as well as severe flooding.
The university’s Center for Economic and Business Forecasting revealed that the country’s consumer confidence index in July plunged for the third consecutive month to 73.9 from 74.9 in June, its lowest point this year.
The decline was attributed to severe, widespread flooding, the enforcement of the new royal decree on foreign labor management, and low agricultural commodity prices. The combination of these negative factors have caused the public to perceive that the economy has not made great strides towards recovery.
The center’s director, Dr. Thanawat Polwichai, revealed that the CCI fell, even in areas unaffected by flooding, as businesses experienced a drop in sales and were uncertain about the government’s handling of its new decree on foreign labor.
He therefore advised the government to accelerate its disbursement of economic stimulus in the hopes of enhancing the public’s purchasing power.