Thai consumer confidence index hits 11-month high in July

BANGKOK, Aug 7 (Reuters): A university's index of Thai consumer confidence rose for the third month in July, suggesting domestic demand might be improving after the army seized power and pledged to fix an economy battered by prolonged political tensions.

The consumer confidence index of the University of the Thai Chamber of Commerce rose to 78.2 in July, the highest level since August 2013. For June, the number was 75.1.

The army seized power on May 22. Through April, the index fell 13 straight months, reaching a trough of 67.8. From November, the declines were fuelled by months of sometimes violent political crisis, which hurt consumption, investment and tourism.

"Consumer confidence picked up due to the stable political situation," Thanavath Phonvichai, an economics professor at the university, told a briefing. "Confidence is expected to improve steadily, with consumption the key economic driver in the second half." Thailand's economy, Southeast Asia's second biggest, contracted 2.1 per cent in January-March from the last three months of 2013 and 0.6 per cent from a year earlier. Second quarter and first half GDP data will be released on Aug. 18.

Exports, equivalent to more than half of the economy, have long been sluggish, while imports have slumped and factory output has fallen for more than a year, showing that pillars of the economy are shaky.