Thai Consumer confidence rose for the 12th consecutive month in May

Consumer confidence in Thailand rose for the 12th consecutive month in May to a 39-month high, driven by higher foreign tourist arrivals and increased activity during the recent national election.

Key Takeaways

• Thai consumer confidence rose in May to a 39-month high, boosted by higher foreign tourist arrivals and increased activity during the recent national election.
• Spending during the May election helped consumption and confidence was also boosted by better-than-expected economic growth in the first quarter, driven by tourism.
• Despite the rise in consumer confidence, consumers were concerned about the high cost of living and political uncertainty after the May 14 election.

The consumer index of the University of the Thai Chamber of Commerce (UTCC) rose to 55.7 in May from 55.0 in April. However, consumers remain concerned about the high cost of living and political uncertainty after the May 14 election. The leader of the Move Forward Party (MFP), Pita Limjaroenrat, faces an uphill battle in wooing members of an unelected Senate to back him in a legislative vote to choose the premier, which is expected by August this year.

The high consumer confidence in Thailand’s economy indicates a positive outlook on the country’s economic growth in the near future. Additionally, increased foreign tourist arrivals contribute significantly to the growth of the Thai economy.

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However, concerns about the high cost of living have kept consumers vigilant about their spending habits. The recent election also created a sense of political uncertainty, but the continuous improvement in consumer confidence and the economy suggests that citizens are optimistic about the future.

Pita Limjaroenrat’s efforts to gain backing from the unelected Senate could significantly sway the choice of Thailand’s new premier, which is expected to be chosen by August this year.