ID :
149493
Thu, 11/11/2010 - 19:39
Auther :
Shortlink :
http://m.oananews.org//node/149493
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Thai Consumer Confidence Index in October marks 1st drop in six months: UTCC
BANGKOK, Nov 11 -- Confidence index among Thai consumers in October fell to 80.2, down from 81.5, posting its first drop in six months, as people remain worried about floods, employment and a stronger baht, according to a survey conducted by the University of the Thai Chamber of Commerce (UTCC).
Thanawat Polvichai, director of the UTCC Economic and Business Forecasting Center, said the recent decline in the Consumer Confidence Index (CCI) was attributed to lower related indices.
Compared to September, the overall economy index in October was registered at 71.6, down from 73.5 while the index related to job opportunities and access to employment fell to 71.5 from 72.5 and the personal income confidence index declined to 97.4 from 98.7.
The director also added that consumers were still uncertain regarding the current situations, particularly the recent flooding nationwide which may take its toll on the economy, job security as well as concerned over the rapid baht appreciation, rising cost of living and growing concerns over political uncertainty.
The rising cost of living was fuelled by the strong baht, the flooding and rising oil prices, Mr Thanawat explained.
Currently, the Thai Chamber of Commerce assessed that damage from flooding in October and November stands about Bt70-100 billion (about US$2.4-3.4 billion), likely affecting job opportunities, dampen consumer confidence resulting in a drop of purchasing power of automobile, tourism and new houses.
Mr Thanawat warned that if the problems are not quickly addressed, the Thai economy in the last quarter of this year will feel the pinch and the negative impact will clearly be seen in early 2011.
The center forecast that the Thai economic growth in the fourth quarter is likely to grow by 2-2.5 per cent, down from 3-4 per cent earlier projected.
The academic suggested that the government should help compensate this year's flood victims, particularly compensation for agricultural sector as it will help offset the total cost of damage from Bt100 billion to Bt50 billion (approximately $3.4 billion to $1.7 billion).
The government should also provide low-interest loans for the industrial sector.
However, Mr Thanawat conceded the rising baht still undermines the export sector and the country’s economy in the medium term. (MCOT online news)
Thanawat Polvichai, director of the UTCC Economic and Business Forecasting Center, said the recent decline in the Consumer Confidence Index (CCI) was attributed to lower related indices.
Compared to September, the overall economy index in October was registered at 71.6, down from 73.5 while the index related to job opportunities and access to employment fell to 71.5 from 72.5 and the personal income confidence index declined to 97.4 from 98.7.
The director also added that consumers were still uncertain regarding the current situations, particularly the recent flooding nationwide which may take its toll on the economy, job security as well as concerned over the rapid baht appreciation, rising cost of living and growing concerns over political uncertainty.
The rising cost of living was fuelled by the strong baht, the flooding and rising oil prices, Mr Thanawat explained.
Currently, the Thai Chamber of Commerce assessed that damage from flooding in October and November stands about Bt70-100 billion (about US$2.4-3.4 billion), likely affecting job opportunities, dampen consumer confidence resulting in a drop of purchasing power of automobile, tourism and new houses.
Mr Thanawat warned that if the problems are not quickly addressed, the Thai economy in the last quarter of this year will feel the pinch and the negative impact will clearly be seen in early 2011.
The center forecast that the Thai economic growth in the fourth quarter is likely to grow by 2-2.5 per cent, down from 3-4 per cent earlier projected.
The academic suggested that the government should help compensate this year's flood victims, particularly compensation for agricultural sector as it will help offset the total cost of damage from Bt100 billion to Bt50 billion (approximately $3.4 billion to $1.7 billion).
The government should also provide low-interest loans for the industrial sector.
However, Mr Thanawat conceded the rising baht still undermines the export sector and the country’s economy in the medium term. (MCOT online news)
