8-6-2023 (BANGKOK) Thai consumer confidence reached a 39-month high in May, marking the 12th consecutive month of growth, according to a survey conducted by the University of the Thai Chamber of Commerce. The surge in confidence can be attributed to an increase in foreign tourist arrivals and heightened activity surrounding the recent national election.
The consumer index, which measures consumer sentiment, rose to 55.7 in May from 55.0 in April, as reported by the university. The May election stimulated spending, leading to a boost in consumption. Additionally, the better-than-expected economic growth in the first quarter, driven by the tourism sector, contributed to the rise in confidence.
Government spokesperson Anucha Burapachaisri announced that Thailand welcomed 10.4 million foreign tourists between January and May 28. The government has set a target of attracting at least 25 million foreign visitors for the entirety of 2023.
Despite the positive outlook, consumers expressed concerns about the high cost of living and lingering political uncertainty following the election. Pita Limjaroenrat, the frontrunner for the prime ministerial position, has formed an alliance with seven other parties. However, he faces challenges in garnering support from members of the unelected Senate for a legislative vote to determine the next premier. This vote is expected to take place by August.
