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Roundup: Thai consumer confidence index drops to lowest point in 14 months: academic

Xinhua, August 7, 2015 Adjust font size:

Thailand's consumer confidence index has dropped to the lowest point since last year, said a noted economist on Friday.

Tanavat Polvichai, head of University of the Thai Chamber of Commerce's Center of Economic & Business Forecasts, said that the Thai consumer confidence index had dropped to 73.4 percent last month, registering the lowest since the last 14 months.

Such indications on the part of the Thai consumers had shown sustained, adverse trends for seven consecutive months so far this year, given the public sentiment under which they apparently preferred to not spend much to help with the country's domestic consumption sector, according to the academic.

The Thai economic stagflation, as opposed to inflation, was feared to remain throughout this year as far as the continual decline of the consumer confidence index is concerned, Tanavat said.

"Given a reported 4.8 percent drop in export industry during the first half of this year, sustained decline in the prices of farm products, world economic recession and Thailand's political uncertainties, the country's consumer confidence index is likely to keep plummeting for the rest of the year, to say the least," the academic said.

Besides, he said, the country's business sentiment index, especially involving the small- and medium-sized enterprise sector, had already registered the lowest over the last decade.

"That obviously resulted from the sustained stagflation of the Thai economy under which the consumers have become very saving- conscious on their daily spendings," he said.

In bid to stimulate domestic consumption, the Thai private sector, especially major discount stores, have launched sale campaigns with some merchandise given as much as 80 percent in price cut while chain restaurants have tempted customers with set menus at discounted prices, according to a report of the university's Center of Economic & Business Forecasts.

For instance, the frequency of Thai restaurant diners has reportedly dropped from an average of four times a week to twice a week since last year.

Nevertheless, Thailand's tourist industry reportedly increased by 23 percent over this year's first half with a forecast 28 million visitors from around the world throughout this year.

The surge in the tourism sector obviously made up for the sustained decline in the country's export industry in both value and volume so far this year. Endi