The consumer confidence index hit 74.4 in June, a 13-month low after six months of decline, caused by economic problems and water shortages, the University of the Thai Chamber of Commerce (UTCC) said on Thursday.
From its survey of 2,241 consumers nationwide, the university reported that the consumer confidence index dropped to 74.4 from 75.6 in May this year. It attributed the dampened confidence to continuous export decline, water shortages, low prices for farm products, reduced incomes of farmers, uncertainty about the global economy and the rising retail price of oil.
UTCC vice president Thanavath Phonvichai said the consumer confidence decline over six months was a dangerous sign for the Thai economy and the government should speed up the disbursement of its budgets and implement job creation projects to increase purchasing power.
Water shortages would delay the main rice crop on 3.4 million rai of paddy fields for two months and that meant the delayed injection of farmers' 15-billion-baht income into the economic system, he said.