Consumer confidence slumps to five-year low
Consumer confidence plunged to a five-year low in February, hit by an unstable political outlook following MR Pridiyathorn Devakula's departure from the Cabinet, high oil prices and the strong baht, according to the University of the Thai Chamber of Commerce.
The consumer confidence index dropped to 79 points - the lowest since April 2002 - from 79.9 in January, said the university. While the overall index was 79, the confidence index for economic outlook dropped from 74.2 points in January to 73.4. Confidence in employment also fell from 75.4 to 74.4, while confidence in future income retreated from 90.2 to 89.2. "Consumers are concerned with the high oil prices and political instability," said Thanawat Polvichai, director of the university's Economic and Business Forecast Centre. Quoted by Agence France-Presse, Thanawat said the strong baht, up nearly 12 per cent from a year earlier against the dollar, had 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 University of the Thai Chamber of Commerce also forecast that consumer spending would remain sluggish in the first half of the year. The index is based on a sample of 2,235 people nationwide.
|
