Worries, fears sap confidence in Sept: UTCC

The consumer confidence index inched down to 67.5 points last month from 68.4 in August. The confidence index for job opportunity slid to 68.9 in September from 69.9 a month before, while the index for future income dropped to 94.8 from 95.8.
The university surveyed 2,243 respondents across the country on their confidence in the economy in September.
Thanavat Phonvichai, director of the university’s Economic and Business Forecasting Centre, said yesterday that all indices of consumer confidence declined for the first time this year because of consumers’ worries over the world economy, the flooding in Thailand, and political unrest between the red shirts and the yellow shirts.
The trade deficit in August and the Fiscal Policy Office’s downgrade of its 2012 economic-growth forecast also dampened confidence. Consumers remained distressed over the rising cost of living.
Only the 71-point surge in the SET Index in September was positive news.
However, the declines in all indices did not signal an economic slowdown, as they were for only one month, the forecasting centre said. The flooding and political concerns were only short-term factors.
Consumer concern is expected to recede this month, while the US economic situation and Europe’s debt crisis need to be monitored closely, the centre said.
The government should expedite disbursements to offset the weakness in exports on softening overseas demand, it said.
The Bt350-billion fund for flood measures and Bt300-billion investment budget for next year remain sufficient to circulate in the economic system.
The government may need to rush expenditures for infrastructure development such as mass transit and the countrywide rail system.
Gross domestic product is forecast to grow 5-5.5 per cent this year and 4.5-5 per cent next year, while exports are predicted to expand 5-10 per cent next year.
Based on the September survey, a propriety measure for new-car purchases dropped to 100.4 from 101.2 in the previous month. That for new-house purchases fell to 71.6 from 73.4 and for investment by small and medium-sized enterprises to 78.4 from 80, Thanavat said.