Floods, econ worries hit Thai Sept consumer confidence

* Worries over new flooding hurt confidence

* Concern over GDP growth forecast downgrade

* Oil price increase hits confidence

* Worries about politics after rival groups clash

BANGKOK, Oct 3 (Reuters) - Data from University of the ThaiChamber of Commerce

KEY DATAConsumer Confidence IndexSept Aug July June May Apr Mar Feb Jan67.5 68.4 68.2 68.5 67.1 67.5 66.5 65.5 64.0BACKGROUND

- Consumer confidence in Thailand edged up in August, liftedby government stimulus measures and delays in tax increases asthe economy continued to recover from devastating flooding inlate 2011. But global economic risks could weigh on sentiment.

- The government has introduced measures to help flood-hitfirms and individuals along with economic stimulus measurespromised during last year's election, such as wage increases anda rice intervention scheme to boost income and spending.

- Minimum wages rose 40 percent in April; the government hasalso brought in price controls and extended subsidies ontransport and utilities to hold down the cost of living.

- The floods battered seven huge industrial estates inOctober last year; industry is broadly back to normal but theglobal economic slowdown is now hurting demand for exports,which are equal to 60 percent of the economy each year.

- To help business hit by flooding the Bank of Thailand(BOT) cut its benchmark interest rate

in Novemberand January, taking it to 3.0 percent, and it has left it therefor five straight meetings including September's.

- It next reviews interest rates on Oct. 17. Despite recentweak economic data, most economists expect the BOT to keep therate steady for now, particularly after a jump in Septemberinflation.

- Thai exports fell 5.1 percent in August from a yearearlier as Europe's crisis continued to sap demand whilefactory output tumbled 11.3 percent.

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- Last week, the central bank said it would again cut itsscaled-down export growth forecast of 7 percent for 2012. But itsaid the economy could still expand 5.7 percent this year due tostrong domestic demand after 2011 growth of just 0.1 percent dueto the floods.

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(Reporting by Boontiwa Wichakul; Writing by Amy SawittaLefevre; Editing by Alan Raybould)

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Keywords: THAILAND ECONOMY/CONFIDENCE