Analysts indicated that rising living expenses have dragged down the household economic index, hitting its lowest point in 5 months, and are warning the public about creating new debt.
According to the Kasikorn Research Center (KResearch), the Household Economic Index in April was at 45.8 points, the same as in the previous month. The center expected the figure for the next 3 months would be at 46.5, the lowest in 5 months.
KResearch indicated that the figure signals household purchasing power has not yet recovered, due to concerns over high commodity prices, living expenses, debt, and income.
KResearch said that, if the economy continues to slump, more pressure would be felt on household living expenses in the next few months, especially in the agricultural sector.
In addition, the index related to consumers’ ability to pay debts for the next 3 months was likely to stay in negative territory, KResearch analysts pointed out, saying the figure would be lower than 50 points, which reflects consumers’ worries about living expenses and new debt.
