Consumer Spending slowing and car sales down 9%

SCB’s EIC (Economic Intelligence Center) Thaigrowthjust put out this chart (red line – property; yellow – consumer spending; and blue – auto), essentially shows what we have been thinking for the past few months that the Thai consumer may be tapped out with the recovery from the floods in 4Q11, the first time car buying scheme and the first home purchase scheme. Also Sahapat put out a comment saying that they are seeing slowly growth in their consumer product lines a month ago and just today Toyota Thailand came out to say…

Thai automotive industry sales are expected to fall 9.5 percent to 1.3 million vehicles in 2013, Toyota Motor Corp’s Thai unit said on Wednesday, which compares with its earlier projection of a 16 percent drop.

..so to put it all together, we think financials will begin to see some pain towards the end of this year, the consumer sector and the property sector as well.  

Source: Reuters

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