Floods drag down consumer confidence to seven-month low last month 

Santi Kiranand, representative of Federation of Thai Capital Market Organisations (Fetco), said the three-month Fetco Investor Confidence Index edged up 3.99 per cent month-on-month to 104.1 amid the economic recovery, particularly in exports and tourism.
Some investors remain worried about the Thai economic conditions, while keeping a watch on the US monetary direction, he said.
"Investors have been watching factors affecting capital movements, particularly the US interest rate, planned reduction of the US balance sheet as well as gradual reduction of the euro zone economic stimulus. Internally, economic figures and the public investment policy will support investment," he said. 
Surat Chiracharasporn, head of bond pricing and product development at the Thai Bond Market Association, said the Interest Rate Expectation Index stayed at 49 in August, signally the Thai policy rate is likely to be kept on hold at 1.5 per cent.
The Monetary Policy Committee's expected decision could come in view of low inflation and gradual economic expansion, he said.
The 5- and 10-year government bond yields in September are expected to drop to 74 and 75 from the previous estimate of 84 and 83, respectively, meaning yields of both bonds will likely move higher but with less confidence.
Fetco chairman Voravan Tarapoom said the Thai stock market remained steady since the beginning of this year, lagging behind regional peers and other stock markets due to a lack of certain positive factors. 
While domestic consumption remains lacklustre, tourism and the government's acceleration of its investment budget and more auctions for the government's infrastructure projects would help sustain the economic recovery process, she said.
In the latter half of this year, there may not be much positive factors for investment as Thai-listed companies' earnings growth would likely be lower than those in the neighbouring countries, she said. The Thai bourse' earnings per share is forecast to rise 4 per cent this year and 10 per cent next year.
Stocks in commercial banking, construction materials and consumption are expected to recover rapidly as the economy recovers, while healthcare and renewable energy, among others, with not much reliance on the economy, will see long-term growth.
Thanawat Polvichai of the University of the Thai Chamber of Commerce's Centre for Economic and Business Forecasting, said that the Consumer Confidence Index fell for the third consecutive month and to its seven-month low at 73.9 in July from 74.9 in June. 
He cited recent floods in several Northern and Northeastern provinces, low prices of agricultural products - particularly rice, tapioca, corn for animals and oil palm for the drop.
"Three consecutive falls came from the economic factor. The floods are expected to give only short-term impact and will unlikely affect the index in August," he said.
He also urged the government to accelerate spending, public investment in infrastructure projects and stimulus for grassroots economy to boost people's purchasing power.