Thailand’s consumer confidence rose in November compared to that in the previous month, indicating an improvement in domestic spending which accounts for the majority of overall economic activity.
According to the data released Tuesday by the University of the Thai Chamber of Commerce, the country’s consumer confidence index rose to 69.40 in November, up from 68.10 in October and above the analysts’ expectation of 67.50.
This report comes after it was revealed last week that Thailand’s industrial output grew in October more than expected compared to that during the same period last year, indicating an upswing in manufacturing.
According to the data released last week by the Office of Industrial Economics of Thailand, the country’s industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines and utilities, rose 36.1 percent in October compared to that during the same month last year, up from a 15.9 percent fall in September and above the analysts’ expectation of 29.8 percent.
It was reported last month that Thailand’s economic growth slowed down in the third quarter, compared to that in the previous quarter.
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The data published last month by the National Statistical Office of Thailand showed the country’s gross domestic product (GDP), which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy, grew 3 percent in the quarter ending Sept. 30, compared with that in the same period last year, down from a 4.4 percent growth in the second quarter.
Meanwhile, last week, the Bank of Thailand’s (BoT) decided to keep its policy rate unchanged at 2.75 percent. In October, the central bank cut the policy rate by 25 basis points.
The BoT noted that the downside risks to the global economy remained a key concern for Thailand’s central bank. While recent monetary policy easing measures among major economies supported the financial markets, the BoT viewed the global economic outlook as weak.
The central bank cited the possibility of China’s economy slowing further, the U.S. falling off its fiscal cliff and an escalation in the euro zone crisis as significant downside risks for Thailand and the rest of emerging Asia.
Considering that Thailand’s export-led growth model has been affected by the global economy, it can be expected that the BoT will further cut its policy rate by 2013.