Confidence reverses decline

The index was at 21.4 points in December, up from 18.5 points in November, when the flooding peaked.
The index, derived from 3,250 respondents, showed that consumer sentiment recovered in December after taking a major blow during the floods, said Yanyong Phuangrach, the ministry’s permanent secretary.
The consumer confidence index was at 29.6 points in September, before falling to 23.8 points in October last year.
Yanyong said that although last month’s index was up, consumers were still not confident about spending, as indicated by the index’s level below 50.
Unlike the consumer confidence index of the University of the Thai Chamber of Commerce, the ministry’s index ranges from 1-100 points. A score below 50 means low consumer confidence, while levels above 50 indicate high confidence.
To boost consumer confidence, respondents called for the government to make controlling the cost of living its first priority, followed by solving unemployment, boosting wages and accelerating post-flood rehabilitation.
Yanyong said an increase in officials’ salaries, higher crop prices and an increase in the daily minimum wage to Bt300 would help boost confidence this year. However, an unstable political environment and the economic crunch in the euro zone and the United States could have indirect negative impacts.
Other indices related to consumer confidence were still below average. The index on the overall economy stood at 13.4 points, the one on future economic circumstances at 29.8 points, and that on future incomes at 43.2 points. The index on current employment opportunities was at 10.1 points, while that on future employment opportunities stood at 10.8 points.
The index on current spending on consumer goods was at 56.5 points, while that for future spending was at 56.1 points. The index on future spending on durable goods such as electronic appliances stood at 18 points last month.