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Published on March 14, 2008

The University of the Thai Chamber of Commerce's Consumer Confidence Index rose to 79.5 points, from 78.1 in January. Other confidence indexes also continued to increase, recording the sharpest rise in 18 months.

However, based on a survey of 2,239 respondents, the indexes have now remained below 100 points for 44 consecutive months, representing weak consumer confidence.

Consumers have greater confidence in purchasing more durable goods such as houses and cars, as well as daring to invest in new businesses and travelling.

"Consumers are spending more money now that the political situation is back on track, despite the return of ousted prime minister Thaksin Shinawatra," said Thanawat Polvichai, director of the university's Economic and Business Forecasting Centre. But he said the increased level of confidence was only for the near future.

All related confidence indexes followed an upward trend last month, because of the clearer political scene. Confidence in the overall economy rose from 71.2 in January to 72.6 points last month.

Confidence in future income improved from January's 91.4 points to 93.2 last month, while the index on future employment opportunities rose from 71.6 to 72.7 points.

Thanawat said the resurgence in consumer confidence could indicate people believed the government's policies would help drive the economy. However, consumers are still worried about rising consumer-goods prices, which are driven by surging oil prices.

Petchanet Pratruangkrai

The Nation