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Thailand: Consumer confidence hits 11-month high
Consumer confidence rose for a second straight month in January to the highest level in 11 months, driven by the government’s stimulus measures, improving exports and higher farm prices.
The University of the Thai Chamber of Commerce (UTCC) reported yesterday that the consumer confidence index rose to 74.5 points last month from 73.7 in December, when it had risen for the first time in three months after dropping to 72.3 in November and 73.1 in October.
The index rose to 74.2 points in September, up from 73.2 in August, 72.5 in July and 71.6 in June — a 25-month low.
Thanavath Phonvichai, vice-president for research at UTCC, said despite flooding in 12 southern provinces and concerns about the international trade policies of the new US president, the government’s stimulus measures, higher exports, recovering rubber prices, and spending during the New Year had helped boost consumer sentiment in January.
But he said consumers are likely to stay cautious on spending in the first quarter due to concerns over the world’s economic prospects.
Mr Thanavath said sentiment should recover strongly from the second quarter if the government succeeds in disbursing its additional mid-year budget of 190 billion baht for fiscal 2017 to finance local development of the 18 clusters of provinces as planned. The additional mid-year budget is expected to start being injected by April or May.
The National Legislative Assembly (NLA) late last month passed in three straight readings the 190-billion-baht supplementary budget bill for the 2017 fiscal year, where more than half of the fund was earmarked to finance investment in provincial clusters. Of the 190 billion baht, about 115 billion baht will be allocated for local development of provincial clusters. The government has sought to increase budgets for provincial clusters, hoping it will spur private sector investment.
Finance Minister Apisak Tantivorawong told the NLA that the Thai economy was expected to grow by 3-4% in 2017 thanks to an increase in public investment.
The UTCC itself projects economic growth of 3.5-4% this year, with export growth of 2%.
Source: http://www.bangkokpost.com/business/news/1191749/consumer-confidence-hits-11-month-high