Thai consumer confidence fell for the fifth consecutive month in July, reaching its lowest point since August of the previous year. This decline is attributed to concerns over a sluggish economic recovery, rising living costs, and political uncertainty, according to a survey released on Tuesday.
The consumer confidence index from the University of the Thai Chamber of Commerce (UTCC) dropped to 57.7 in July, down from 58.9 in June, as stated in their announcement.
Consumers expressed anxiety over prospective political instability and the slow recovery of the economy, which has not yet seen clear stimulus measures. The Constitutional Court is expected to issue a ruling on Wednesday regarding a case that seeks to dissolve the opposition party Move Forward, which is currently the largest party in parliament.
In addition, the court is set to announce its decision on August 14 concerning a petition for the dismissal of Prime Minister Srettha Thavisin following a cabinet appointment; Mr. Srettha has denied any wrongdoing.
Should Mr. Srettha be removed, it could lead to significant uncertainty for Thailand, necessitating the election of a new prime minister by parliament. This scenario may lead to tensions between his Pheu Thai Party and coalition partners, potentially resulting in a reshuffle of the governing alliance and alterations in cabinet positions and policies.
The university noted that consumer confidence could improve if the government expedited budget disbursement and implemented economic stimulation measures, such as a household stimulus scheme, in the final quarter of the year.
