Thai consumer confidence index (CCI) has fallen below 50 points of the 100-point scale in May mainly because of falling farm prices.
According to the University of the Thai Chamber of Commerce’s survey to gauge the country’s overall economic and business situation in relation to other economies in the region, CCI in May fell to 47.7 points from 49.4 in April.
The main factor attributed to the fall of CGI index was the concern over agricultural price instability.
Furthermore, rising fuel prices have forced a slowdown in consumption and private sector investment due to concerns that production overheads will be increased.
However, the UTCC research center said although overall confidence in the economy has fallen by a small degree, it remained confident that the economy will be rebound in the latter half of the year.
It advised the government to speed up state budget allocations to help drive spending and investments and critically to provide incentives to organize more activities in secondary provinces to promote tourism and increase wealth distribution to smaller communities.