ID :
65431
Thu, 06/11/2009 - 20:35
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http://m.oananews.org//node/65431
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Thai consumer confidence index in May lowest in 7 years
BANGKOK, June 11 (TNA) - Thailand’s consumer confidence index continued its nosedive in May to 71.5, its lowest level in 90 months, or seven and one half years, according to a monthly survey released on Thursday.
The decline in the consumer confidence index which was below the 100 level for 59 consecutive months also showed that consumers did not have confidence in the national economy, while their concerns on domestic political problem increased, said Thanawat Palavichai, director of the Economic and Business Forecast Centre at the University of Thai Chamber of Commerce (UTCC).
Indicators of the index in May fell in almost every item, he said. Consumers were worried about continued rising oil prices, especially prices of gasoline and diesel which had increased about Bt2 per litre, as they were worried that the jump would push up the cost of living, Mr. Thanawat said.
Private consumption is not expected to expand much until the third quarter this year, he said.
Global oil prices are projected to rise to US$80 per barrel within the next three months, Mr. Thanawat said. The expected increase will depress economy because a jump of the retail oil price of every Bt1 per litre would lower Thailand’s consumer purchasing power of around Bt2.1 billion per month and push up inflation to between 0.1-0.2 per cent, said Mr. Thanawat.
He urged the government to speed on its budget disbursement to stimulate economy.
The government spending will help reduce an expected contraction of Thai economy this year, said Mr. Thanawat. (TNA)
The decline in the consumer confidence index which was below the 100 level for 59 consecutive months also showed that consumers did not have confidence in the national economy, while their concerns on domestic political problem increased, said Thanawat Palavichai, director of the Economic and Business Forecast Centre at the University of Thai Chamber of Commerce (UTCC).
Indicators of the index in May fell in almost every item, he said. Consumers were worried about continued rising oil prices, especially prices of gasoline and diesel which had increased about Bt2 per litre, as they were worried that the jump would push up the cost of living, Mr. Thanawat said.
Private consumption is not expected to expand much until the third quarter this year, he said.
Global oil prices are projected to rise to US$80 per barrel within the next three months, Mr. Thanawat said. The expected increase will depress economy because a jump of the retail oil price of every Bt1 per litre would lower Thailand’s consumer purchasing power of around Bt2.1 billion per month and push up inflation to between 0.1-0.2 per cent, said Mr. Thanawat.
He urged the government to speed on its budget disbursement to stimulate economy.
The government spending will help reduce an expected contraction of Thai economy this year, said Mr. Thanawat. (TNA)
