Consumer confidence lowest since May 2014
The University of the Thai Chamber of Commerce’s Centre for Economic and Business Forecasting says consumer confidence has been declining for consecutive 11 months amid worries about the economy, drought and now the coronavirus.
Director Preeda Phothong said a survey of 2,247 people nationwide found that confidence in the economy had dropped from 56 points in December to 54.9 points by late January.
Confidence regarding job opportunities fell from 64.8 to 63.8 points in the same period, and in hopes for future income from 84.1 to 83 points.
The overall consumer confidence index currently stands at 67.3 points, down from 68.3.
“That’s the lowest in 69 months, going back to May 2014,” Preeda said.
Primary concerns for the public at the moment are the coronavirus outbreak, the stalled budget for fiscal 2020, continued political instability and the economy’s future outlook.
“These concerns will make consumers cautious about spending until the second or third quarter of this year,” he said.
Thanawat Polwichai, the university’s rector and an adviser at the forecasting centre, expects the confidence index to drop further this month because of the economy’s failure to show signs of recovery and the rising cost of living.
The centre predicts that the tourism sector will lose Bt220 billion as the virus bars Chinese from travelling, but exports are seen expanding by 0.8 per cent, particularly in foodstuffs and sanitation products.
“The government should maintain the current interest rate because any reduction would cause liquidity problems in the future,” Thanawat said.