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BANGKOK – According to a survey from the University of the Thai Chamber of Commerce (UTCC), political uncertainty the surging Baht and slow economic recovery have dragged Thai consumers’ confidence index to a 21-month low as of June.
UTCC’s Centre for Economic and Business Forecasting announced the Consumer Confidence Index in June sliding from 77.7 to 76.4, the lowest in 21 months.
Thanavath Phonvichai, director of the Centre, the decline also reflected the concerns over global economic uncertainties, amid the trade war between US and China and low exports and crop prices.
As the new government had not been formed, consumers were concerned of local political uncertainty and the likelihood of instability of the next government, thus, the confidence index involving politics dropped to its lowest in five years, he said.
Under the circumstance, consumers would be careful in their spending until the third quarter, said Mr Thanavath.
However, he noted that the Centre predicted the Thai economic growth to expand 3.5 percent if the new government injected billion of baht through welfare schemes and introduce tourism campaign.
A new Cabinet is expected to be sworn in this month.
The administration would be tasked with restoring consumer confidence and accelerate budget disbursement to stimulate the economy, he said.