| Business | October 17, 2008 11:10 AM EST |
| Thai consumer confidence on continual decline |
| By Luisana Suegart from Markets.com |
Domestic political upheaval and a deteriorating global financial situation continue to push consumer confidence in Thailand, according to the University of the Thai Chamber of Commerce in Bangkok.
The university reported that the index fell by one point in August to 69.5, its lowest level in months. The index is based on a study that surveys 2,255 people; officials for the Chamber of Commerce say the worst is yet to come.
For the first time in five years, Thailand’s SET Index closed below 500 on Thursday. On Friday, the index fell another 10 percent, causing it to suspend trading for 30 minutes. The baht is close to its lowest levels versus the U.S. dollar this year.
The anti-government protests continue to cause violent clashes in the country, as activists seek to overthrow the country’s government based on one-man, one-vote democracy. In September, labor unions threatened to cut off water, electricity and telephone services to the government. On Tuesday, protesters tried to prevent Prime Minister Somchai Wongsawat from addressing lawmakers, causing the police to fire tear gas.
Since protests began in May, consumer confidence has declined for each of the five months; protesters threaten to further engage in violent actions, stunting growth possibilities for the country. In an attempt to restore investor confidence, Thailand’s central bank has chosen not to alter the benchmark rate, previously increased on two occasions.
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