BANGKOK, July 14 – Thailand’s Consumer Confidence Index (CCI) rose in June for the second consecutive month, and it is the first time in five months that all consumer confidence indices increased, according to the Center for Economic and Business Forecasting of the University of the Thai Chamber of Commerce (UTCC).
University Deputy Rector Saowanee Thairungrote released the Consumer Confidence Survey for June 2011 showing that the CCI rose due to high hopes among the public that the new government will implement new policies to stimulate the economy.
Moreover, large amounts of cash circulated during the election campaign and the drop in retail oil prices contributed to the higher confidence index on the current situation for the first time in four months.
Confidence indices on the overall economy, employment and future incomes in June were 72.3, 72.9 and 99.8 respectively, compared to May indices of 71.1, 71.7 and 98.5 respectively.
The Consumer Confidence Index improved for the first time in four months from 63.0 in May to 63.9 in June, indicating that consumers viewed the country’s economy and employment opportunities as starting to improve.
The index for the economic outlook rose for the third consecutive month. The Consumer Confidence Index for the next six months edged up from 86 in May to 87.4 in June, reflecting rising confidence.
The centre forecast that domestic consumption will remain stagnant for the time being as consumers are concerned about the high cost of living.
Regarding the Thai economic outlook, there are more confidence among consumers hoping that the new government’s policies will revitalise the economy, leading to increasing confidence index and high consumption in the second half of this year.
Thanawat Ponwichai, director of the university’s Economic and Business Forecasting Centre, said the Thai economy is likely to grow by six per cent in the second half of this year and more than 4.5 per cent for the whole year.
