Consumer confidence index falls first time in 7 months

Consumer confidence index (CCI) in February fell for the first time in seven months as concern has risen over political instability.

According to Dr Thanawat Pholvichai, director of the University of Thai Chamber of Commerce’s Center for Economic and Business Forecasting, CCI in February dropped to 79.3 from 80.0 in January this year.

The February CCI was the lowest in seven months since August last year.

He attributed the decline in CCI to growing concern of political instability, and farm prices.

He said although farm prices are on an uptrend, but prices of most crops are still at low levels, thus weaning the purchasing power of the people.

Moreover, concern about the strong baht currency, and minimum wage increase that could have impact in the economy thus resulted in subdued consumer confidence, he said.

But he said the subdued consumer confidence needed close monitoring for the next few months.

He also said the CCI could be back again if the government escalates spending on its “Thai Niyom Yungyuen” project to help low income earners, and pushes for the projected 4.2-4.6% economic growth this year.