CCI rises for third month in a row

The Consumer Confidence Index (CCI) climbed from 73.2 points in August to 74.2 last month. A level below 100, however, still reflects weak consumer sentiment.
The higher confidence is good news for the retail industry, as more consumers believe it is the best time in seven months to buy a new house or new car or to travel, and for small and medium-sized enterprises to expand their businesses.
Meanwhile, the confidence sub-index related to the cost of living climbed to the highest level in nine months, as most goods prices have not risen, while fuel prices decreased last month.
Thanavath Phonvichai, director of the UTCC’s Economic and Business Forecasting Centre, said yesterday that with rising consumer confidence, the retail sector would make gradual gains this quarter.
“Consumer confidence is on the rise as there are no serious negative factors,” he said.
“Global economic growth has been maintained, while no impacts from the European Union’s slowing growth and the United Kingdom’s decision to leave the EU have been seen. Rising unemployment in [Thailand] has recovered, while the government has continued its investment plan as well as stimulating private-sector investment. Therefore, consumer confidence should continue to grow in the remaining [months] of the year.”
Some consumers are worried about the flooding in the Northern and the Central regions. However, the UTCC does not believe the current flooding will affect the country’s economy seriously. The flood impact should be limited and cause losses of only Bt6 billion to Bt7 billion, or only 0.05 per cent of gross domestic product.
GDP growth this year is expected to come in at 3.3-3.5 per cent.
Based on 2,258 responses to its September survey, the UTCC found other sub-indices reflecting consumer confidence had also increased for the third consecutive month, including on future incomes, from 89.7 points in August to 90.7 points in September, and future employment opportunities, from 67.6 to 68.6.
Confidence in political stability also improved, inching over the 100-point baseline for the second time since December 2014, from 99 points in August to 100.7 last month. It was the fourth consecutive monthly rise and highest level in 11 years and five months.
The poll also found confidence |in the cost of living was the highest in six months, rising from 73.6 to 75.6, and the “Gross Domestic Happiness” index rose from 86.5 to 89.2 points.