Thai consumer confidence index falls in July for the first time in 14 months

The CCI in July fell to 55.6, from 56.7 in June, and marked the first decline since April 2021, the University of the Thai Chamber of Commerce (UTCC)’s Centre for Economic and Business Forecasting said, reporting its survey results on Friday.

The dip in CCI has been caused by consumer concerns over uncertainty in the formation of the new government nearly three months since the general election, said UTCC president Thanawat Phonwichai.

Respondents are also worried about the rising cost of living, especially the electricity bills, as well as the stagnation in the global economy due to the impact of international conflicts, he said.

He added that the global concerns were fuelled by the hike in interest rates by foreign central banks to tame inflation in their countries, which has also affected Thailand’s export sector.

Regarding different aspects of the economy, the centre reported its findings that the confidence index on the overall economic situation in July dropped slightly to 50.3 from 51.2 in June. The confidence index in employment opportunities also dropped to 52.7 from 53.7 last month, while the confidence index in future income dipped to 63.9 from 65.1 in June.

“The drop in all three indexes indicate consumers’ concerns about the fluctuations of the economy that would affect their career and earnings, not just industries,” said Thanawat.

The centre estimated that the delay in government formation has already cost the Thai economy 50-80 billion baht in cash flow as people and businesses are reluctant to spend their money during uncertain times.

The centre, however, said that if the political situation resolves this month or by September, the CCI could bounce back, depending on consumer sentiment about the economic policies of the new government.