Thai consumer confidence declined for the first time in 14 months in July, dented by concerns over persistent political uncertainty after elections were held in May, and a slow economic recovery, a survey showed on Friday.
The consumer index of the University of the Thai Chamber of Commerce (UTCC) fell to 55.6 in July from 56.7 in June.
Consumers were worried about uncertainty over the formation of a new government and its stability, while the high cost of living remained a worry, the university said in a statement.
Thailand has faced prolonged uncertainty since the election after election winner Move Forward Party's (MFP) bid to form a government was blocked twice by conservative and pro-army opponents.
The second-place May 14 general election winner Pheu Thai Party on Thursday received a boost in its efforts to form a government after a ninth party, the Chartthaipattana Party, joined its alliance and a senior member of a rival, military-backed party pledged its support to try to end months of deadlock.
Tourists receive a foot massage on a beach in Pattaya, Chonburi province. (Photo: Somchai Poomlard)
However, the tourism sector continues to support economic activity, with rising foreign tourist arrivals, the UTCC said.
Thailand has long been a popular destination for foreign tourists, receiving nearly 40 million visitors before the coronavirus pandemic in 2019. The government is expecting at least 25 million visitors this year.