Confidence inches up for a third month

Consumer confidence rose for a third straight month in January as people felt more positive about their future following the formation of an elected government. The confidence index in January was 78.1, a rise from 77.3 in December.

The confidence index in the overall economy rose to 71.2 from 70.4 in December.

The index for job opportunities increased to 71.6 from 71 and the index on future income rose to 91.4 from 90.4, according to the survey by the University of the Thai Chamber of Commerce.

The gauge tracks a nationwide survey of 2,242 respondents.

''The formation of a new government helped boost confidence,'' said Thanavath Phonvichai, director of the university's Center for Economic and Business Forecasting.

''They expected that the new elected government would come up with economic stimulus measures to restore economy, and they expect the economic situation will become more stabilised.''

However, Mr Thanavath said signs of economic recovery were not yet clear and sustainable. He blamed higher oil prices and cost of living on the negative outlook.

''Consumers are still concerned particularly about the ever-rising costs of living and world economic volatility because of the mortgage crisis in the United States,'' he said.

Following the formation of the new government, Mr Thanavath said the survey also found confidence in politics improved for the first time in two years.

The survey also found the gross domestic happiness index rose over 100 base points for the first time in January compared with 99.9 in December on the improved prospects both in politics and the economy.

Bangkok Post, 15.02.2008

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