ECONOMY CONSUMER CONFIDENCE INDEX
Bangkok Post, Thailand
Garment firm closures dampen sentiment
Last month’s closure of the garment and footwear manufacturers Thai Silp South East Asia Import Export Co and Union Footwear Plc hurt consumer confidence, according to the latest survey by the University of the Thai Chamber Of Commerce.
The survey of more than 2,000 consumers showed many were worried about unemployment, while others feared the strong baht and high fuel prices, according to Thanavath Phonvichai, director of the university’s Center for Economic and Business Forecasting.
The strong baht caused Thailand to lose some of its competitive edge in exports with many original equipment manufacturers hit hard. Based on figures from the Federation of Thai Industries, about 1,200 factories across the nation have closed due to weak competitiveness.
Despite several cuts in retail petroleum prices last month, the July index was still well below the 100-point median. The overall index of 75.8 points was the lowest since March 2002 and down from 76.8 points in June.
The figure reflected declines in three key components of the index: the overall economy, job opportunities and future income.
According to the survey, confidence in the overall economy dropped to 70.0 points from 71.0 in June, the poorest figure in 65 months. Confidence in job opportunities declined to 70.8 from 71.9 and future income to 86.6 from 87.4.
The falling index indicates poor consumption will persist through the third quarter this year.
It might improve in the fourth quarter or early next year if all the country’s political and economic problems are settled, he added.
