Thai consumer confidence hits 12-year low

[BANGKOK] Thailand's consumer confidence tumbled to a 12-year low in February, a survey showed yesterday, as political unrest continued to take a toll on consumption and investment in South-east Asia's second-biggest economy.

The consumer confidence index from the University of the Thai Chamber of Commerce (UTCC) fell to 69.9 in February - the lowest since November 2001 - from 71.5 in January. It was the 11th straight month of declines. Sentiment was also hurt by slowing economic growth and a weaker outlook for this year, with the downward trend likely to continue in the coming months, UTCC said.

"People are worried about weaker purchasing power, smaller income and fewer new jobs. Consumption is likely to remain subdued until late in the second quarter," UTCC economics professor Thanavath Phonvichai told a news conference. "There is no positive sign in the first quarter. It remains to be seen when a new government will be formed. If we have a new government and its policies in the second quarter, confidence will return."