The Increasing cost of living has been cited as being a major factor in the KR Household Economic Condition Index (KR-EIC) dropping to 43.8 during June, its lowest point in 11 months.
Produced monthly by the Kasikorn Research Center (K-Research), the Center also revised down the KR-EIC figure in the next three months to 45.2, which if realised would be the lowest figure in 13 months.
The grim projection is backed by the fact that employment and income rates are still recovering, while personal debt rates continue to rise. The Center indicated that the factors holding back the household sector are increasing commodity product prices, with decreasing income and household savings.
Despite the inflation rate being maintained during the first half of 2015, private sector spending has not yet fully recovered, as the household sector still has diminishing purchasing power. At the same time it said that living expenses continue to rise.
Household debt recorded a slower growth rate during the first quarter, as consumers became more cautious with their spending, and financial institutes hardened their lending policies.
Spending in the real estate sector grew only 1.7 percent over the quarter. K-Research said it had expected the figure would reach 2 percent, and this lower-than-expected figure is due to decreasing public purchasing power and the subdued economy.
This story was written by Andrew Batt, Group Editor of Dot Property Group. Send your news, views, press releases and comments to him at [email protected].
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