Consumer confidence at 10 month low

The University of the Thai Chamber of Commerce (UTCC), which compiles the data, pre¬dicted a further decline in the index through the fourth quarter in the absence of positive signals to boost consumer confidence. This would result in a continued drop in consumption, business expansion and investment, it said yesterday.

The index dropped to 76.8 points during the first 10 days of this month, from 77.7 in August.

The index was determined through polling 852 respondents in greater Bangkok on September 9 and 10 about their feelings on the disqualification of Samak Sundaravej from the premiership, as well as their views on stateenterprise workers striking and the closure of airports and ports.

Confidence in the overall economy decreased considerably, from 70.5 points in August to 69.6 this month. Confidence in future income fell sharply from 91.7 points in August to 90.7, while the index on future employment opportunities dropped from 70.9 points to 70.2.

Falling confidence has led to people feeling reluctant to spend money or invest. More than 50 per cent said it was not a suitable time to invest, travel, purchase new cars or buy new homes.

"Consumer confidence is forecast to continue sinking to its lowest level in the first part of next year if the political turmoil extends into the fourth quarter of this year," he said.

To urgently boost consumer confidence and ensure economic expansion, Thanawat said the government must unlock the political conflict soon, as well as seek a new prime minister with high qualifications to heal the divisions in the country.

UTCC yesterday also announced its regular monthly Consumer Confidence Index for August. Based on 2,233 respondents, the index dropped from 78.9 points in July to 77.7, its lowest level in eight months.

The July index had shown a rise after four months consecutive monthly falls. This was attributed to the government's six measures aimed at easing the costofliving burden on consumers.

Saowanee Thairungroj, vice president of the university's Research Division, said political uncertainty was a major factor behind the weak consumer confidence.

The survey also found that the index for the gross domestic happiness of consumers continued to fall last month, due to concerns about political instability and the rising cost of living.

The socalled "Happiness Index" slumped from 96.8 points in July to 95.3. Confidence in the political situation fell to 47, from 54.1 points in July.