Thailand’s Consumer Sentiment Index rose to its highest level in seven months during December as the government’s policy to boost public spending resulted in more than THB 14 billion in cash-flow during the New Year festival.
According to the Director of the Center for Economic and Business Forecasting, Thanavath Phonvichai of the University of the Thai Chamber of Commerce, the Index improved significantly for the third month in a row, and to the highest level in the seven months since April 2015.
The Index’s positive performance was attributed to the consumers’ belief that the economy is gradually improving, and the hope the economy will recover in the near future as a result of the government’s stimulus measures.
The Index of consumer sentiment concerning the economy as a whole stood at 65.1, up from 63.4 during the previous, while the index of confidence regarding the current economy saw an upturn for the third consecutive month to 51.8, up from 50.3 in November, and marking the highest level in six months.
The Index of sentiment regarding the economy for the next six months also rose, reaching 78.3, up from 76.4 the previous month and marking the highest level in seven months.
As for the government’s THB 15,000 tax deduction policy on goods and services, 20.87 percent of consumers qualified for the scheme.
The policy was deemed to be successful in encouraging consumer spending, as an additional THB 14.964 billion changed hands over the New Year. The policy as a whole reportedly contributed to the country’s overall economic growth by 0.1 percent.