Thai consumer confidence near 2-year low on political unrest
By Orathai Sriring and Boontiwa Wichakul
BANGKOK (Reuters) - Thailand's consumer confidence fell for an eighth straight month in November as protests in the capital Bangkok to oust the government threaten the economy, especially tourism, during the festive year-end.
The consumer confidence index from the University of the Thai Chamber of Commerce (UTCC) slipped to 75 in November from 76.
Sentiment was also hurt by weaker economic growth and a poor outlook, with the downward trend likely to continue for some months, the university added.
"Confidence was hurt by many factors; slowing growth and high living costs plus the political situation. There is no sign of confidence recovering and spending is likely to remain subdued until early next year," UTCC economics professor Thanavath Phonvichai told a news conference.
Thai anti-government protesters vowed to storm Bangkok's police headquarters on Tuesday in their unrelenting bid to oust the government of Prime Minister Yingluck Shinawatra.
The Bank of Thailand surprisingly cut interest rates late last month to prop up flagging economic growth it now predicts will be only 3 percent this year, down from the scaled-down 3.7 percent seen in October.
On Tuesday, the Finance Ministry also cut its economic growth forecast for the year to 3 percent from 3.7 percent, saying the political unrest had affected tourism and budget disbursements.
The baht did not react to consumer confidence data and dipped slightly after the finance ministry's growth forecast. It stood at 32.2 to the dollar on Tuesday afternoon.
Consumer confidence has steadily declined since April due to slowing economic growth, and in recent months, from political turmoil at home. The central bank may act again if Thailand's key economic engines do not pick up.
The escalating street violence has disrupted companies' operations and caused the cancellation or postponement of business events, which will drag on consumption.
"Consumer confidence may remain under the weather in the near term given a double whammy of slowing growth momentum and ongoing the political situation," said Bernard Aw, economist with Forecast Pte in Singapore.
"The protests are likely to affect economic activity going forward," he added.
Southeast Asia's second-biggest economy after Indonesia grew 1.3 percent in July-September from the previous three months, its first expansion in three quarters but below expectations for 1.7 percent growth due to poor exports and sluggish household spending and investment.
(Editing by Jacqueline Wong)
