BANGKOK (Reuters) -Thai consumer confidence dropped for a sixth consecutive month in July to its lowest level in 31 months due mainly to concerns over U.S. tariffs, a lagging economy and government instability, a survey showed on Thursday.
The consumer index of the University of the Thai Chamber of Commerce fell to 51.7 in July from 52.7 in the previous month.
The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
“The confidence index shows no signs of recovery, with consumer purchasing power still subdued,” university president Thanavath Phonvichai told a press conference.
“The economy shows signs of stagnation and needs more stimulation,” he said, adding that the economy might grow by only 1.7% this year, after last year’s 2.5% expansion.
While the United States has reduced its tariff on imported goods from Thailand to 19% from 36%, there are still uncertainties relating to U.S. tariffs on transshipments via Thailand from third countries, Thanavath said.
“What needs to be clearly defined is tariffs on transshipments. They must be explicitly outlined for businesses to adapt accordingly,” he said.
Consumers were also worried about the instability of the government following the suspension of Prime Minister Paetongtarn Shinawatra from duty pending a case seeking her dismissal, Thanavath said.
“The political situation remains unstable following the prime minister’s suspension from duty, creating an unclear outlook and undermining confidence,” he said.
(Reporting by Orathai Sriring, Thanadech Staporncharnchai and Kitiphong Thaichareon; Editing by Chayut Setboonsarng)
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