Thai consumer confidence drops for first time in 14 months over political uncertainty
THAILAND’S consumer confidence declined for the first time in 14 months in July, dented by concerns over persistent political uncertainty after the May general election, as well as a slow economic recovery, a survey showed on Friday (Aug 11).
The consumer index of the University of the Thai Chamber of Commerce fell to 55.6 in July from 56.7 in June.
Consumers were worried about uncertainty over the formation of a new government and its stability, while the high cost of living remained a worry, the university said in a statement.
Thailand has faced prolonged uncertainty since the election after the winner Move Forward Party’s bid to form a government was blocked twice by conservative and pro-army opponents.
The second-place winner Pheu Thai on Thursday received a boost in its efforts to form a government after a ninth party joined its alliance and a senior member of a rival, military-backed party pledged its support to try to end months of deadlock.
However, the tourism sector continues to support economic activity, with rising foreign tourist arrivals, the university said.
Thailand has long been a popular destination for foreign tourists, receiving nearly 40 million visitors in pre-pandemic 2019. The government is expecting at least 25 million visitors this year. REUTERS
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