Thailand’s November Consumer Confidence Index hits record low in decade

BANGKOK, December 8 (TNA) - Thailand’s Consumer Confidence Index (CCI) in November fell for the fourth consecutive month and hit the record low in a past decade at 71 from 72.4 in October on impact from the severe flood in the country, especially in Bangkok and surrounding provinces, according to a survey by the Economic and Business Forecasting Center of the University of the Thai Chamber of Commerce (UTCC). Center director Thanawat Polvichai said the sharp drop in CCI for November was also attributed to worries over volatility in global economy resulted from public debts of several European countries which might affect Thailand’s economy. Although floods in several areas in Thailand have started receding, people are worried over cost of living which might increase and they have tightened their belts and would spend less during the upcoming New Year’s festival, Thanawat said. The slowdown in spending is expected to continue until the first quarter of 2012 and in order to boost economy the government has to accelerate on budget spending while financial institutions have to speed on extending loans and insurance firms pay money soonest to insured companies that were hit by flood, Thanawat said. Risk factors confronting Thai economy next year are the government’s policy in rehabilitation, world’s economy especially in the European Union (EU) and Thailand’s politics, he said. There are signs that Thai economy would grow between 4-5 per cent in 2012, up from 1.5 – 2 per cent projected to grow this year, according to Thanawat. Meanwhile, Pornsilp Patcharintanakul, vice chairman of Thai Chamber of Commerce, said the private sector is still worried over a possible delay of government spending on rehabilitation programmes while the sector also still does not have confidence over the government’s measures to prevent flooding in future. Pornsilp suggested that the government fix the exact date to explain to foreign investors on its plans to solve flood problem and on plan to spend money to help push the country’s economy. (TNA)