InfoQuest (September 06, 2019) -- The Center for Economic and Business Forecasting of University of the Thai Chamber of Commerce (UTCC) revealed that the consumer confidence index in August 2019 dropped to 73.6 from 75.0 in July. It is dropping for six straight months and hits a 33-month lowest record amid concerns about the economic slowdown and political instability.
According to the report, the overall economic sentiment index fell to 60.9 in August from 62.2 last month, the employment sentiment index fell to 69.7 from 70.9, and the future income sentiment index fell to 90.4 from 91.9.
Key headwinds include the Fiscal Policy Office (FPO) revealed that the GDP growth rate in the second quarter of 2019 was 2.3 percent, the lowest level in nearly five years, and the Office of the National Economic and Social Development Council (NESDC) cut its forecast for 2019 GDP growth to 2.7-3.2 percent. Moreover, consumers are worried about the trade war is worsening and drought affected agricultural prices and farmers' incomes remain low.
Positive factors include the Cabinet approved stimulus measures, exports rose 4.28 percent in July (the first increase in five months), the Monetary Policy Committee (MPC) cut its policy rate to 1.50 percent, the Thai baht is surging, and domestic retail oil prices show a downward trend.
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