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Consumer confidence at 7-month low

June 13, 2024
in News
Consumer confidence at 7-month low
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Confidence falls for third straight month on slow economic growth and political uncertainty

PUBLISHED : 13 Jun 2024 at 11:53

A vegetable vendor sorts through fresh chillies at Bang Kapi market, Bangkok, in May 2024. (Photo: Varuth Hirunyatheb)

A vegetable vendor sorts through fresh chillies at Bang Kapi market, Bangkok, in May 2024. (Photo: Varuth Hirunyatheb)

Thai consumer confidence dropped for a third straight month in May, falling to its lowest level since October last year on concerns over a slow economic recovery and political uncertainty, a survey showed on Thursday.

The consumer index of the University of the Thai Chamber of Commerce (UTCC) fell to 60.5 in May from 62.1 in April, the university said in a statement.

Thai courts will convene on a trio of politically charged cases next week, including one that could potentially lead to the prime minister’s dismissal, increasing the prospect of more government instability in the Southeast Asian country.

Consumers were not confident about whether the economy would recover quickly, especially when the current political situation became uncertain, the university said.

However, consumer confidence was likely to improve if the government sped up budget disbursements and helped stimulate an economic recovery in the second half of this year, it said.

The economy grew 1.5% in the first quarter from a year earlier, slowing from 1.7% growth in the prior quarter, lagging regional peers.

The Bank of Thailand (BoT) predicts growth of 2.6% this year, after last year’s 1.9% expansion. On Wednesday, the central bank left its key interest rate unchanged for a third straight meeting, as widely expected, resisting government pressure to lower borrowing costs to help revive the country’s economy.

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Copyright for syndicated content belongs to the linked Source : Bangkok Post – https://www.bangkokpost.com/business/general/2810329/thailands-consumer-confidence-falls-for-third-straight-month-in-may-2024

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