Private consumption in Thailand declines.

Thailand's biggest commercial bank, the Bangkok Bank, reviewed the country's economic situation for the first half of 2007 and said the following about private consumption. "Private consumption and investment were negatively affected as political instability dampened consumers' and investors' confidences." The private consumption index declined negative 0.2 percent when compared with the first six months of 2006. The bank cited The Bank of Thailand, the country's central bank, and the National Social and Economic Development Board as its sources in an undated brief.

In 2oo4, private consumption grew 6.2 percent. In 2005, growth was 4.5 percent. And by 2006, private consumption grew only 3.1 percent.

One positive sign for the country's consumers is that inflation appears to be under control. Thailand's rate of inflation "dropped sharply" during the first half of 2007 to 2.2 percent. This compares with a rate of inflation of 5.9 percent for the first half of 2006. The bank said, "The downward trend of inflation stemmed from the slumped domestic demand which helped reduce pressure from the demand-pull inflation while the continued appreciation of the baht helped mitigate the cost-push inflation from potentially rising oil prices."

The bank expects that the return to civilian rule will improve the economy.