Festive-season spending growth down to 5%
Year-end spending growth this year will be only 5 per cent compared with 10.9 per cent last year and 19.4 per cent in 2004, mainly because consumers are worried about a downward trend in the economy next year, according to a survey conducted by the University of the Thai Chamber of Commerce (UTCC).
Consumers are expected to spend Bt69.49 billion over the New Year season, compared to Bt66.18 billion last year. Spending has increased at a lower rate, reflecting the fact that consumers are still concerned about economic stagnation and their future income next year, said Thanawat Pholwichai, director of the university's Economics and Business Forecast Centre. Bangkok residents will spend Bt32.53 billion, while provincial expenditures will reach Bt36.95 billion. "Consumer confidence has deteriorated due to economic uncertainties. They are more careful about their spending than last year, particularly Bangkokians, since their costs of living have been increasing but their income is unchanged," Thanawat said. Thanawat suggested that the government accelerate budget disbursement for investment projects to stimulate economic growth. Saowanee Thairungroj, dean of the Faculty of Economics, said people this year would like to see peace in southern Thailand as their first wish, followed by better economic growth, harmony among Thais, a peaceful society, safety in life, their own business growth and rising income. Essentially, Thais have prayed for the whole society before themselves. This showed that people are concerned about the big picture since it will affect their own lives, Saowanee said. The 1,227 respondents were asked how they would spend money during the festive season. The highest proportion of respondents, 24 per cent, picked travel as their top choice. Luxury products were the next-highest choice, with 17.7 per cent, followed by purchasing durable goods by 13.2 per cent and parties by 11.2 per cent. Yajai Chuwicha, head of the Chamber Business Poll at the university, said sources of funds were 45.1 per cent from salaries, 39.7 per cent from savings, 13.8 per cent from bonuses and extra income and the rest from other sources. She explained that people normally spend their savings for special occasions like the New Year season, despite the economic slowdown. People aged 20-29 tend to spend the most at Bt9,367 per person, followed by those in the 30-39 age bracket with Bt9,243; and 40-49 with Bt7,602. People aged above 60 tend spend Bt5,520.
Petchanet Pratruangkrai
The Nation
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