June 13, 2008
BANGKOK - The consumer confidence fell in May as oil prices surged and political instability continued.
The consumer confidence index dropped to 78.8 from 79.9 in April, according to the University of the Thai Chamber of Commerce.
"Surging oil prices led people to worry about the rising cost of living," pollster Thanawat Phonvichai said.
"Current political realities also worsened people's worries."
Global oil prices hit a record high of 139.12 dollars per barrel on June 6, while Thailand's inflation rate rose to 7.6 percent in May, according to AFP.
Meanwhile daily anti-government protests began on May 25 and have continued in smaller numbers into June.
Consumers were optimistic earlier in the year that the new government would stimulate the country's sluggish economy, resulting in rising consumer confidence for five consecutive months to April.
But the index has consistently remained below 100, indicating that pessimists outnumber optimists.
The index is based on a survey of more than 2,000 people nationwide.
