Thailand’s consumer confidence continued to drop in February from the concerns over the coronavirus outbreak, with the tourism sector and related industries heavily affected by the declining number of visitors.
The University of the Thai Chamber of Commerce (UTCC) said on Monday that the consumer confidence index – which has fallen from 68.3 in December 2019 down to the current 44.9 – is at its lowest in 27 months. The index was at 45.4 in January.
They said that apart from the outbreak’s impacts on tourism, the ongoing drought which expected to end later in June has also affected farmers’ income. Around 14 million farmers account for more than 50 per cent of the country’s labour force right now.
The UTCC said consumer confidence could continue to drop. They suggest the government to come with measures to shore up confidence levels, such as effective preventive measures against the outbreak in Thailand. Water management is also something the government should concentrate on, in addition to the acceleration of the disbursement of the delayed fiscal year budget.
The UTCC’s forward index for consumer confidence in the next six months was also down from 47 in January to 42.8 in February. They expect the outbreak to have shaved off 500 billion baht from the economy. Meanwhile, 72.5 per cent of businesses that have been surveyed said the 150 billion baht worth of supportive measures that the government is coming up with are still not enough. Most debtors are also asking to extend their repayment time by an average of 43 days, they added.
