Most believe country is in recession

The index measures consumer confidence, major concerns and spending habits in 51 markets.

The latest Thai Consumer Confidence Index has dropped from 92 in December 2007 to 87 this time round, representing the lowest level in the last three years, while globally the Nielsen Confidence Index has also recorded the largest single drop since its establishment in 2005.

"Consumer confidence fell in 39 out of 48 countries - including Thailand - in the past six months, with New Zealand, the United States and Latvia suffering the deepest declines," said Chantira Luesakul, managing director of The Nielsen Company (Thailand).

Among the 39 markets recording a decline in consumer confidence, 15 fell by double-digits.

"The last six months have been the most turbulent period for the global economy in several decades. When the United States sneezed at the outset of the sub-prime disaster nearly a year ago the rest of the world caught a cold. No regions or countries have been spared the domino effect of the US sub-prime and credit crisis.

"Consumers around the world are struggling with the same global issues that are having an impact on their daily lives. It's an unfortunate pendulum. On the one hand we are seeing soaring global oil prices, rising commodity prices which are hitting grocery prices, rising interest rates and increasing inflation," Chantira said.

"This is happening in tandem with falling property prices, weakening labour markets, decreasing industrial output levels and growing unemployment rates which have all resulted in less spending power for the average person. Overall, it's not a good picture."

Globally, Norway topped the global survey with an index of 129 followed by India with 122, and Indonesia and Denmark both with 120.

The most remarkable drop in confidence came from New Zealand, which plunged a staggering 18 points, while Taiwan bucked the global trend of economic gloom, posting a buoyant 14-point increase in Nielsen's Consumer Confidence Index in the past six months, up to 83 from 69.

In Thailand, a majority of consumers believe that job prospects over the next 12 months would be "not so good", at 66 per cent, and bad, at 6 per cent. Half were not confident about the state of their personal finances for the next year.

When asked about their spending intentions, 69 per cent of Thais believe that now is "not so good" or even a "bad" time to buy things they want over the next 12 months. After covering essential living expenses, putting money into savings continues to be the priority for 65 per cent of Thai consumers, ranking second in the world after Singapore with 69 per cent putting money aside for a rainy day.

Besides saving, vacations (52 per cent), new technology (34 per cent) and new clothes (33 per cent) were the three most popular spending options for Thai consumers. Surprisingly, Thais lead the region with most people wanting to invest in retirement funds - 25 per cent.

Thai consumers ranked among the world's top 10 most concerned about the economy, at 52 per cent, and political stability (22 per cent). When asked what their biggest worry would be in the event of an economic downturn, 67 per cent said political instability and 48 per cent cited both unemployment and inflation.