Consumer Confidence Soars for 13th Straight Month in June
Consumer confidence in Thailand has experienced an upward trend, marking its 13th consecutive month of growth in June. According to the University of the Thai Chamber of Commerce (UTCC), the index reached its highest level in 40 months, dating back to March 2020. This surge in confidence can be attributed to the resilience of the tourism sector and the increasing prices of agricultural products.
The UTCC reported that the consumer confidence index rose to 56.7 in June, surpassing the previous month’s figure of 55.1. This positive trajectory has been observed since January, with scores of 55, 53.8, 52.6, and 51.7 recorded in the preceding months.
UTCC President Thanavath Phonvichai explained that the improved consumer sentiment reflects the country’s economic recovery, driven by the revival of the tourism sector and increased economic activities in various regions. He also noted that the decrease in oil prices has contributed to a reduction in the cost of living, further boosting consumer confidence.
Despite the optimistic outlook, the index remains below the 100-point mark due to concerns about the political landscape and high electricity prices. The formation of a new government and stability in the global financial institutions are areas of uncertainty that impact consumer sentiment. The sluggish world economy, geopolitical conflicts, and interest rate adjustments to tackle inflation in different countries also pose challenges to the global economic recovery, potentially leading to a recession. The contraction in exports during this period has also had a negative impact on people’s purchasing power across all regions.
Looking ahead, Thanavath highlighted key factors that could support consumer confidence for the remainder of the year. These include the increasing number of foreign arrivals, which leads to a greater circulation of money within the country, as well as improved economic activities in various regions.