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Poll: Confidence Picking Up Further
Friday, February 13, 2009 3:58 PM


(Source: Bangkok Post)trackingBy Phusadee Arunmas, Bangkok Post, Thailand

Feb. 13--Consumer confidence rose for a second straight month in January, as Thais started feeling more positive after the government introduced measures to revive the ailing economy.

The Consumer Confidence Index (CCI) rose to 75.2 from 74.8 in December and 74.2 in November, according to the survey by the University of the Thai Chamber of Commerce (UTCC).

The gauge, which tracks 2,223 respondents nationwide, is rebounding after November produced the lowest figure since January 2002.

The second consecutive month of recovery reflected increasing hope among consumers for economic improvement after the government introduced a 117- billion-baht stimulus package.

Relatively low retail fuel prices also helped shore up consumer confidence.

The CCI combines indices measuring sentiment about the economy, job opportunities and future income.

From December to January, there was a rise in sentiment on the overall economy from 67.5 to 68.3, and on future income from 88.8 to 89.7. However, the index for job opportunities dropped to 67.7 from 68.0, reflecting growing concern over unemployment.

Although a score of 100 is the norm, the index has been below 100 for 55 months, indicating that Thai consumers still lack confidence in the political situation, economic conditions, job opportunities and their future income.

UTCC economist Thanavath Phonvichai warned that the rebound may not be sustained as it is based solely on hope. "The country's political conditions, the world and US economic prospects, the relatively high cost of living and unemployment are still the key factors that influence consumers' confidence," he said.

"The government should thus accelerate implementing its economic stimulus measures to restore confidence in consumers and to spur consumption and private investment in the second half of the year."

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