Thai consumer confidence dips due to political instability and slow recovery

Reports today reveal that last month Thai consumer confidence dramatically dropped for the first time in 14 months. Evidence pointed towards the general unease of continuous political instability in the Kingdom of Thailand after the General Election took place in May, as well as a sluggishly recovering economy.

The survey, helmed by the esteemed University of the Thai Chamber of Commerce (UTCC), showcased a diminished consumer index for July, standing at 55.6 compared to June’s reading of 56.7.

The university highlighted the prevalent concerns amongst consumers with regard to the ambiguous situation surrounding the formation of a fresh government body. Stability was a major concern as well. Additionally, issues related to the high cost of living continue to burden the Thai people.

Thailand has continued to grapple with ambiguity post-election, with the Move Forward Party (MFP), notwithstanding their win, being thwarted twice by the resistance of conservative and pro-military factions in their attempts to form a government.

Last week provided a significant boost for the Pheu Thai Party, which was the second-largest party in the May 14 General Election. It received newfound support from the Chartthaipattana Party, marking the ninth party to join its aspiring alliance.

A military-backed opponent’s high-ranking member also extended support, hoping to put an end to the long-standing stalemate, reported Bangkok Post.

Despite the political turmoil, the UTCC reported that the tourism industry remains a stronghold supporting economic activities due to a surge in foreign tourist arrivals.

Thailand, already renowned worldwide as a favoured destination among international tourists and who welcomed nearly 40 million visitors before the outbreak of the Covid-19 pandemic in 2019, anticipates no less than 25 million tourists this year.

About a month ago, protests and political unease contributed to the growing unease within Thailand’s private sector. Read here to see how these events and factors have affected the Thai economy.