Strong baht causes CCI to drop for first time in 7 months

BANGKOK, May 2 (TNA) - Thailand's consumer confidence index (CCI) in April 2013 dropped for the first time in seven months to 83.7 points from 84.8 in March, caused mainly by public concerns over negative impacts of the strong baht on national economy, exports and tourism. Thanavat Polvichai, Director of the Centre for Economic and Business Forecasting of Bangkok-based University of the Thai Chamber of Commerce, acknowledged on Thursday his centre's survey on the CCI in April found that local consumers were also worried over declining farm produce prices, as they have dropped by over 20 per cent year-on-year, particularly those of natural rubber and oil palm nuts, and over the domestic political situation. Thanavat assessed although the baht appreciation, since early this year, has mainly affected local businesses, its impacts should finally reach the general public, seen by a drop in the farm produce prices and delays in people's purchase of houses and vehicles. According to the senior economist, Thailand's inflation stood at its slowest rate of 2.42 per cent in 41 months in April, showing that people's purchasing power and the national economy were growing slower, urging the Thai government to inject money into the national economy and better manage foreign exchange rates. However, the Thai Chamber of Commerce projected, meanwhile, that the Thai economy should still grow by 5 per cent this year. (TNA)