Thai consumer confidence fell in May for the third consecutive month, falling to its lowest level since October last year, according to the monthly survey by the University of the Thai Chamber of Commerce (UTCC), released on Thursday. and which points to concerns linked to the slow economic recovery and growing political uncertainty.
The index fell to 60.5 in May from 62.1 in April, UTCC said in a statement.
This drop in Thai household morale is leading to a drop in consumption while high household debt has pushed banks to tighten credit conditions, affecting many businesses, particularly the automobile industry, points out the Bangkok Post.
This unfavorable climate contributes to the decline in the Thai Industrial Confidence Index (TISI), which also shows a further decline, going from 90.3 points in April to 88.5 in May.
Among the main factors worrying manufacturers are rising oil prices, followed by the weakness of the Thai economy and political uncertainty.
The current government is a heterogeneous formation bringing together members of the powerful military-royalist establishment and representatives of the Pheu Thai party, which has long dominated the polls. An improbable marriage of convenience but considered necessary, by those who had seized power through a military coup in 2014, to counter the new progressive forces victorious in the last elections, perceived as a threat to royalty.
Today, several cases are before the Thai courts involving the country’s most powerful politicians, including Prime Minister Srettha Thavisin who faces ouster. The fate of Srettha Thavisin will be known on July 10 when the Constitutional Court delivers its verdict.
Thailand’s prime minister, a political novice who took office last August, was accused by a group of conservative senators of violating the constitution by appointing a convicted former lawyer to his cabinet in the past.
The return of political turbulence comes as the industrial sector worries about accelerating factory closures in Thailand.
