Thai economy expanded at a satisfactory level in July despite continual decline in consumer spending and investments, the Fiscal Policy Office (FPO) said on Friday.

FPO director general Panee Sathavarodom predicted that Thailand’s consumption and investment would increase by the third quarter of the year as several indicators show that the public have become more confident.

Ms. Panee said the current anti-government group—the People Alliance for Democracy (PAD)’s rally would not shake off investors confident due to Thailand’s strong economic fundamentals.

She commented that the Bank of Thailand’s decision to raise benchmark rate would only but benefit depositors, although it may affect housing loan sectors and add costs to transportations.

Ms. Panee added that the Fiscal Policy Office also sets to raise economic growth projection for 2008 to 4.5-5.5 per cent at its next meeting on September 25.