BANGKOK: Marketers in Thailand are in for a difficult second half of the
year as consumer confidence continues to drop and consumers consider
cutting back on spending, according to a survey from the University of
the Thai Chamber of Commerce. It showed that consumers are wary of the
worsening economy and most believe that a quick turnaround of the
situation was unlikely.
"Most of the decline in confidence was due to the on-going slowdown of
the economy. The negative factors that pose a threat to economic
recovery have intensified, while there are hardly any positive factors,"
said Thanavath Phonvichai, director of the university's Centre for
Economic and Business Forecasting.
Thanavath said negative factors included the Bank of Thailand's lowering
of projected economic growth this year, increasing fuel prices and the
weakening of the baht to more than 45 to the US dollar.
Also, the economic outlook in the United States and Japan was uncertain,
Thailand was slow in resolving bad loans and commodity prices were low,
he said.
According to the report, the consumer-confidence index has declined for
three months in a row, from February to April. The April survey covered
1,713 respondents, 40.9 per cent in Bangkok and the rest in the
provinces.
