Confidence dips in May 18 as fuel prices bite consumers

• Consumer confidence in May 18 dropped on negative factors such as rising oil prices and concerns over the slow economic recovery, low commodity prices and higher living costs.
• According to the latest survey by the University of the Thai Chamber of Commerce (UTCC), the consumer confidence index in May 18 slipped to 80.1 after climbing to 80.9 in Apr 18.
• Thanavath Phonvichai, vice-president for research at the UTCC, said rising fuel prices led to the highest cost of living since Jul 14.
• “Consumers are concerned about higher spending and they are more careful,” he said. “It was surprising that the economy grew continuously but the index still dropped due to fuel prices.”
• Rising oil prices of only THB2-3 per litre have forced consumers to spend an additional THB5bn a month, excluding increases in LPG or natural gas, Mr Thanavath said.
• Other negative factors included the unstable political situation due to the potentially postponed national election, which remains a pressure on confidence.
• Moreover, flat prices for crops and agriculture products such as rubber, rice, pork and chicken also struck income and purchasing power, mainly in rural areas.

External Link: https://www.bangkokpost.com/business/news/1479561/confidence-dips-in-may-as-fuel-prices-bite-consumers