Next lot of spending urged

       Business operators have repeated their calls for the government to speed up the next wave of stimulus spending to improve purchasing power and consumer confidence, a survey reveals.
       Consumer spending has yet to recover and is unlikely to do so while domestic political rifts persist, according to the University of the Thai Chamber of Commerce Business Poll, which surveyed 810 business operators nationwide from the agriculture, trade, service and manufacturing sectors between Aug 17 to 24.
       Operators said a combination of high oil prices, low interest rates, weak consumer and investor confidence, low agricultural product prices and a strong baht were dampening a local recovery.
       Respondents estimated diesel prices at 29.50 bahtper litre in the fourth quarter,with gasoline prices at 35 baht. An annual lending rate of 6.25% is expected with the baht at 34.50 against the dollar.
       But most respondents said diesel and gasoline should cost 27 and 33 baht per litre respectively. They see acceptable lending and foreign-exchange rates at 7% per year and 35.50 baht to the dollar.
       However, the country's economy is improving on a gradual basis, according to the poll, with 57.96% of respondents expecting the economy to improve in the fourth quarter with a full recovery in the first half of next year.
       The majority of businesspeople surveyed forecast the Thai economy would contract by 3% to 4.9% this year, with 1% to 2% growth expected next year.
       Large-sized businesses in the manufacturing sector were likely to reap the greatest benefits from an economic recovery, with foreign purchase orders expected to resume in the third quarter after inventories were depleted over the last two quarters, said UTCC economist Thanavath Phonvichai.
       But benefits have yet to fall on small and medium-sized enterprises (SMEs)and service providers, whose liquidity remained tight while production costs increased due to higher oil prices and a stronger baht, he said.