Economic situation down but consumer outlook positive
THE economy lost some steam this quarter but people still believe in bright prospects for their country, according to a survey from Kantar TNS Thailand in conjunction with Marketbuzzz.
Overall, Thailand is still in a fragile situation with some economic indicators continuing to slide, besides the passing of King Bhumibol Adulyadej.
However, the general sentiment is hopeful with 71 per cent of respondents claiming that Thailand next year will be better or the same as this year.
“Now and again, we see Thais bounce back from negative situations with great positivity. Despite the current gloomy situation, most Thais still have positive sentiment.
“They are still hopeful for a |better future,” Arpapat Boonrod, |CEO of Kantar Insights, said |yesterday.
“What is underpinning the positive outlook are a number of factors that they claim will be better.”
The top three are inbound tourism at 46 per cent, domestic tourism at 44 per cent and Thailand’s overall image at 41 per cent.
One key learning is that many are still unsure of how the current situation will impact them in the future despite having positive feelings.
Women and younger age groups are more likely to understand that changes will happen but are unsure of what the changes will be, while older groups also understand that changes will happen but are less concerned about the impact.
The main concerns are the price of agricultural goods, mentioned by 51 per cent, followed by the cost of living at 42 per cent and Thailand’s economy at 40 per cent.
Most people claim they are cutting back on their expenditure with 80 per cent saying they will control unnecessary expenses and 77 per cent buying goods only as necessary.
“Consumer spending is fundamentally linked to whether the economy is doing well or not and there is no doubt that consumer spending is the most vital component of any economy and accounts for a high proportion of a country’s GDP,” said Grant Bertoli, CEO of Marketbuzzz
The top three spending areas considered daily necessities are food and beverages, dry groceries and mobile phones.
People are delaying their decision to buy non-necessities. For traveling abroad, 64 per cent will spend less or have no plan to do.
Next are investment in an LTF/RMF – 60 per cent will spend less or have no plan to do so – and new cars, 52 per cent.
While almost everyone is controlling outlays, it was the millennials (18-24 years old) claiming they were more likely to look for a second or part-time job, indicating this young age group is looking for more ways to find more money and is not necessarily controlling spending.
