BANGKOK, Oct. 8 (Xinhua) -- Thailand's consumer confidence dropped for the first time in four months in September, weighed down by domestic floods and higher fuel prices amid elevated living costs and geopolitical uncertainty, a survey showed on Thursday.
According to a survey of 2,242 respondents conducted by the University of the Thai Chamber of Commerce, the consumer confidence index slipped to 52.1 last month from 53.2 in August, as all components of the index weakened.
Despite the government's decision to extend economic stimulus measures under the co-payment program for another two months, increasing concerns about flooding and oil prices have dampened expectations for economic recovery, the university said in a statement.
The decline in consumer sentiment is expected to be a temporary setback primarily caused by ongoing flooding, with recovery contingent on stabilizing fuel prices, the easing of geopolitical conflicts in the Middle East, and the prevention of further inundation, said Thanavath Phonvichai, president of the university.
Thanavath said flood-related economic damage was currently estimated at 22 billion baht (about 653 million U.S. dollars), assuming the situation clearly resolves. However, persistent and worsening floods in key central provinces linked to the industrial and agricultural sectors could drive total damage higher.
Looking ahead, he noted that the International Monetary Fund and the World Bank Group meetings scheduled for next week in Bangkok will play a critical role in shaping Thailand's image for investment, tourism, and its status as a Meetings, Incentives, Conferences, and Exhibitions hub. ■
