Thai confidence jumps on hopes the army will bring order after chaos
Polls indicate increasing confidence in the Thai economy following May 22 military coup that bought an end to months of political protest
Thai consumer confidence jumped in May on hopes a new military government would impose order after months of political chaos that had threatened to tip the economy into recession.
The army toppled the remnants of former prime minister Yingluck Shinawatra’s government on May 22 after sometimes deadly protests since November that had forced ministries to close, hurt business confidence and caused the economy to shrink.
The coup was the latest convulsion in a decade-long conflict between the Bangkok-based royalist establishment, dominated by the military, old-money families and the bureaucracy, and the supporters of Yingluck and her brother, Thaksin Shinawatra, who are adored by the poor in the north and northeast.
“The main factor boosting sentiment was confidence in the future due to political clarity.”
Since then the ruling junta has moved to suppress criticism of its seizure of power and nip protests in the bud. Yingluck and prominent supporters of the Shinawatras have been briefly detained and warned against any anti-military activities.
But the crackdown does appear to have brought some stability for now, after months of paralysis under a caretaker government that lacked the power to make policy or approve new spending.
The University of the Thai Chamber of Commerce said on Tuesday its May consumer confidence index hit its highest level since January, just before protesters disrupted a February 2 election called by Yingluck in a failed bid to end the crisis.
The index rose to 70.7 in May from 67.8 in April, when it had fallen for the 13th month in a row and was at its lowest level in more than 12 years. Polling for the index was carried out last week, after the coup.