Consumer’s confidence index drops two consecutive months

Consumer’s confidence index for the month of November has dropped two months in a row to 72.3 from 73.1 points in October while confidence index towards the economy also dropped to 61.2 in November from October’s 62 points, reflecting public anxiety toward slow domestic and global economic recovery, according to the latest forecast of the University of Thai Chamber of Commerce.

Consumer’s confidence index regarding future economy in the next six months also dropped to 74.9 in November from October’s 75.3 points.

Mr Thanawat Pholvichai, director of UTCC’s economic and business forecast centre, said Thursday that there is no clear sign of economic recovery after the consumer’s confidence index has declined two months in a row.

He said he expected the government’s yearend economic stimulus package, amounting to 50-80 billion baht which includes the package to prop up prices of farm products and the shopping incentive package which will allow shoppers to deduct shopping spending up to 15,000 baht from their taxable earnings would be able to stimulate the dampened economy.

Thanawat, however, suggested that if the shopping spending is doubled to 30,000 baht, it would have more positive impact on the economy and the growth rate for the fourth quarter could reach 3 percent.

He pointed out that the recent minimum wage increase did not give enough strength to stimulate the economy.

Source: Thai Public Broadcasting Service (Thai PBS)

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