Rising prices top consumers' concerns

The UTCC survey shows that most consumers are tightening their belts this year out of concern over the rising cost of living.

"Consumers are facing a stringent financial situation, with incomes not covering their cost of living. People currently express high concern over the rising cost of fuel and consumer goods, rather than about [a recurrence of] flooding," Thanavath Phonvichai, director of the university’s Centre of Economic and Business Forecasting, said yesterday.

The UTCC survey had 1,181 respondents, 36.9 per cent of whom said their greatest concern was rising fuel prices, followed by 20.5 per cent concerned about consumer goods prices, 17.2 per cent about the uncertain global economy and 15.4 per cent about instability in the political system.

Just 8.7 per cent of the respondents cited flood concerns as their primary worry this year.

Thanavath said most consumers had placed rising fuel costs and higher goods prices at the top of their worry list as the dual problems were hitting their incomes.

The government needs to address the issue urgently, otherwise economic expansion will slow because of lower consumer spending this year, he said.

The survey showed that more than 23 per cent of respondents plan to reduce their spending this year because of higher goods prices, having already faced a higher burden due to last year’s severe floods. About 64 per cent will not change their spending behaviour, while only 12 per cent will increase their spending.

Most respondents in the latter category variously said they would spend more this year because of higher goods prices, the need for house reconstruction, higher oil prices and higher interest rates.

Wachira Kuntaweethep, lecturer at the Centre of Economic and Business Forecasting, said most respondents were moderately satisfied with the government’s flood-prevention measures. More than 56 per cent said they believed Thailand would face flooding again this year.

Those expressing low confidence in the government’s water-management efficiency variously cited a lack of unity for managing the water situation, low experience gained from water management last year, and the government having no action plan for preventing floods.

Meanwhile, the survey also focused on education spending, with the results showing that the government needs to provide more financial support to encourage students to access higher-quality education.

This would enable them to qualify for a variety of jobs when Thailand opens its doors for Asean economic integration in 2015.

Educational costs are another area of household expenditure that parents are most concerned about, said UTCC president Saowanee Thairungroj.