Thai consumer confidence plunges to five-year low
Thailand's consumer confidence plunged to a five-year low in February, hit by an uncertain political outlook and fears over escalating violence in the country's restive south, researchers said Thursday.
The consumer confidence index dropped to 79.0 points, the lowest since April 2002, from 79.9 points in January, according to the University of the Thai Chamber of Commerce.The index has been mired below 100, which indicates pessimism among consumers, for 32 straight months, it said. "Consumers have become worried about political instability and escalating violence in the south," pollster Thanawat Phonvichai said, referring to the three-year unrest in the Muslim-majority region that has killed some 2,000. Thanawat said the strong Thai baht, up nearly 12 per cent from a year earlier against the dollar, also depressed consumer sentiment. "The strong Thai baht is set to hurt exports which will eventually affect economic growth while the government has failed to introduce measures to stimulate the economy," he said. The strong baht makes Thai exports less competitive in overseas markets and cuts the value of companies' repatriated profits. Thailand's economy, under pressure from last year's coup, is likely to slow this year after posting modest 5.0 per cent growth in 2006, the government's economic think tank said Tuesday. The economy in the fourth quarter of 2006 grew by just 4.2 per cent, down from 4.7 per cent in the third, sparking concern over an economic slump in the upcoming quarters. Thailand's political outlook remained uncertain as a host of policy blunders by the army-installed government, including its inability to arrest suspects of deadly New Year's Eve bombings in Bangkok, sapped its earlier public support. The university also forecast that consumer spending would remain sluggish in the first half of this year. The index is based on a sample of 2,235 people nationwide. Agence France-Presse
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