BANGKOK: Thailand’s consumer sentiment weakened in January due to global economic and geopolitical concerns, according to the latest report from the University of the Thai Chamber of Commerce. The university’s monthly survey showed that the Thai consumer confidence index fell for the first time in four months to 75.5 in January, compared with 76.1 in December.
Thanavath Phonvichai, director of the university’s Economic and Business Forecasting Center, told a news conference that the weakening in consumer confidence was a surprise after the index has been rising for three consecutive months.
The January consumer sentiment survey, which asked 2,248 respondents nationwide, showed Thais have been particularly concerned about uncertainties surrounding global economic and geopolitical conditions as well as Thailand’s weaker growth outlook in 2016.
The Finance Ministry in late January revised downward the country’s 2016 GDP growth estimate to 3.7% from its previous forecast of 3.8% due to weakness in the global economy and volatile world oil prices.
Mr. Thanavath added that local consumers have also been worried about Thailand’s three consecutive years of export contraction, and low farm product prices. Thailand’s exports contracted 5.78% from a year ago in 2015, also due to sluggish global economic conditions and falling oil and agricultural product prices.
Thai consumer sentiment can recover if the government promptly implements its infrastructure investment plans and the country’s exports manage to pick up, said Mr. Thanavath, although there remain downside risks from drought and the direction of farm prices.
