BANGKOK: Thai consumer confidence rose for the first time in 10 months, a university survey showed on Thursday, boosted by stimulus measures from the military government as it tries to revive the economy.
South-East Asia's second-largest economy has been in the doldrums since a military coup last May ended months of political unrest, with exports and consumption sluggish amid high household debt and shaky consumer confidence. Falling commodity prices have cut farmers' incomes.
The consumer confidence index of the University of the Thai Chamber of Commerce increased to 73.4 in October from 72.1 in September, when it struck a 16-month low.
Consumers are still worried about economic uncertainties at home and abroad, the university said in a statement, so spending will likely improve gradually only late this year as more funds from the measures become available.
In a bid to boost the economy, the junta recently approved stimulus measures worth 136 billion baht (US$3.84 billion) aimed at lifting rural areas' purchasing power, followed by steps to help small firms and the property sector and home buyers. This week it approved 13 billion baht of support for rubber farmers.
"The economy appears to have bottomed out in October. It's the first time that people thought the economy would get better," Thanavath Phonvichai, an economics professor at the university, told a news conference.
"If the government can inject money as it has said, consumer confidence and the economy will improve further," he added.
Thanavath said the government likely injected about 10 billion to 20 billion baht (US$282 million - US$563 million) in October from the support measures along with higher foreign receipts on strong growth in tourism The university has forecast economic growth of 2.7%-2.8% this year and rising to 3.5%-4% next year, he said.
The projections are in line with the central bank's growth estimate of 2.7% for this year and 3.7% for 2016. The economy grew just 0.9% last year, the weakest in three years.
Panutpawan Saisuwan, who sells silverware in Bangkok, said business was improving. "I think the economy is getting better. If it's not doing well, clients are reluctant to make orders. But now they are ordering more from me," she said.
"But I'm not going to spend much as I will have a newborn child soon. I will need to plan my savings for my family," she added. - Reuters
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