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Published on February 6, 2008

Cited as the reason was a big jump in prices of consumer goods.

The Chinese New Year period starts tomorrow.

The finding was included in the centre's latest Chamber Business Poll, which surveyed 1,202 respondents planning to celebrate the occasion.

Centre director Thanawat Polvichai said the survey showed locals would spend about Bt33 billion, a slight increase of 6.45 per cent from Bt31 billion last year.

Last year, spending for the occasion grew 7.83 per cent from 2006.

In the poll, 61.9 per cent of respondents said consumer prices were "very expensive" compared with previous times; 39.9 per cent said they were spending more but not buying more, due to higher prices; and 16.6 per cent said they would reduce spending to offset inflation and higher petrol prices. Fears about a sluggish economy are also forcing many to cut back.

Some 99.1 per cent said they planned to buy goods with which to make offerings to deities and ancestors during the festival; 22.6 per cent planned to spend on holiday trips; and 8.9 per cent said they would buy luxury goods like gold ornaments and other accessories.

"Consumers would like to spend more during Chinese New Year, but because of the high prices of goods, many will hold off splurging," Thanawat said.

Thanawat said the poll reflected some sign of an economic recovery but on a limited scale. Consumers still worry about the rising cost of living.

"They'll likely exercise greater care about extravagant spending. As such, this new year will not be as vigorous as in the past," he said.

Thanawat said the survey showed 73.3 per cent of respondents believed the economy should recover with the formation of a new government; 47.5 per cent thought the economy would recover in the second quarter; and 36.2 per cent said it should improve by the third quarter.

He said locals wanted the government to place a priority on solving economic problems. They want it to boost consumer confidence and attract foreign investment.

The centre predicts inflation may stay at 4 per cent in the first half of the year, up from 2.3 per cent last year.

However, inflation should ease to 3.5-4 per cent in the second half after government measures to curb prices for oil and consumer goods take effect.

Nalin Viboonchart

The Nation