Consumer confidence on the rise

CONSUMER confidence in Thailand rocketed to its highest peak in 21 months in January on hopes the economy is bouncing back after a long recession.

An index measuring sentiment in the markeplace rose to 71.9 last month from 70.4 last December, said the University of the Thai Chamber of Commerce in Bangkok. The gauge tracks a national survey of 2,245 respondents.

An economist at the university, Thanavath Phonvichai, said that people have realized the economic crisis has passed and that the economy is trying to bounce back which means spending should continue to increase from the second quarter.

Prime Minister of Thailand, Abhisit Vejjajiva, said the economy may rise to 4.7 per cent this year after shrinking in 2009, supported by recovering exports and expected tourism. The improving vision urged Total Access Communication Pcl, Thailand’s second-biggest mobile-phone agent, to say that the 2010 revenue may rise to as much as nine per cent after dropping last year.

Thailand’s economic bounce-back has received momentum with industrial production rising the most in December. Exports, which equal to about 60 percent of Thailand’s economy, had the biggest earnings in 17 months.

The Bank of Thailand may start holding back monetary stimulus this year, said Governor Tarisa Watanagase.