Thai Nov Consumer Confidence Hits 10-Year Low

Thailand’s consumer confidence slipped to the lowest level in decade as the worst floods paralyzed operations.

Photo by Korbphuk Phromrekha

The consumer confidence index dropped to 61.0 – a level last reached in September 2001, according to a survey by the University of the Thai Chamber of Commerce's Economic and Business Forecasting Center showed on December 8.

Its fourth consecutive slide followed the readings of 62.8 in October, 72.2 in September and 73.8 in August.

The flooding began in the north and northeast of Thailand in late July. It has run down to rice areas, overwhelming several industrial estates and has put the capital itself in danger. The floods have subsided gradually but the future of thousands of jobs remains doubtful.

The Federation of Thai Industries expects Thailand’s 2011 vehicle output at 1.4 million units, short of its previous forecast of 1.8 million units.  In the first nine months of this year, the total vehicle production stood at 1.2 million units.

The Bank of Thailand earlier cut its 2011 economic growth forecast to 2.6% from 4.1% following the floods, and warned of further cuts as the impact of the disaster on growth is likely to be greater than it previously estimated.

The National Economic and Social Development Board, Thailand’s economic agency, has recently cut its growth forecast of Thailand’s 2011 gross domestic product to 1.5% from 3.5%-4.0% previously expected.

Piyarat Setthasiriphaiboon

8 December 2011