The consumer confidence index declined for the third straight month to 81.6 in June from 82.5 in May, the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce reported on Thursday.
Consumer confidence in the overall economy for June also dropped, from 72.8 in May to 71.8 in June. Confidence in job opportunity was down to 73.5 from 74.4 and confidence in future income dropped to 99.3 from 100.4 reported in May, it said.
The centre attributed the decline in all consumer confidence indices to the Fiscal Policy Office slashing its growth projection for 2013 to 4.5% from the previous forecast of 5.3%, the court’s order that public hearings be held on the government’s water and flood management projects, and the announcement the rice pledging price was being cut to 12,000 baht from 15,000 baht a tonne by the National Rice Policy Committee.
Concerns over the uncertainty in global economic recovery, low prices for agricultural products, ongoing political conflict and the continued violence in the far South had also eroded consumers’ confidence.
Positive factors included the weakening of the baht and the price of diesel being kept unchanged at 29.99 baht per litre in Bangkok and its immediate vicinity.