The KR-ECI came in at 41.9 for August, increasing slightly over 41.5 reported in July because Thai households were less concerned about domestic goods and service prices amid falling energy costs. The rise was also attributable to the fact that some households were less anxious about income and employment, thanks partly to the government measures, including cash giveaways for low-income earners under the welfare card program and assistance measures for drought-stricken farmers. In addition, substantial increases in prices of several farm products during the previous month helped bolster farm income for some households over the short term.
Meanwhile, the 3-month Expected KR-ECI rose to 44.3 in August over 43.9 reported for July because some Thai households, in particular agricultural families, were more optimistic towards income and employment over the next three months because of the upcoming harvest season. Since the August KR-ECI survey was conducted before many northeastern provinces were hit by floods, factors related to inundation there were not taken into account.
Looking into the remainder of 2019, KResearch views that Thai households will experience a number of challenges, including rehabilitation of farmlands affected by floods in many northeastern provinces, debt payment and the impact of slowing global economy on the Thai economic performance overall.