Thai Consumer Confidence Declines Again

BANGKOK (Reuters) – Thai consumer confidence dropped for a sixth consecutive month in August to a 13-month low, weighed by concerns about slow economic growth and higher living costs amid uncertainty over a new government’s policies, a survey showed on Thursday.

The consumer index of the University of the Thai Chamber of Commerce fell to 56.5 in August from 57.7 in the previous month, the university said in a statement.

Consumers still viewed the overall economic situation as recovering slowly, while the cost of living remained high, the university noted.

“Consumers are less confident that the economy will recover quickly although the current political situation has begun to stabilise as they have not yet seen clear and tangible economic stimulus measures from the government,” the statement added.

Confidence may improve if the government accelerates budget disbursement and boosts the economy for a clearer recovery later this year, the university suggested.

Consumer confidence has continued to decline as new Prime Minister Paetongtarn Shinawatra, who took office last month, recently outlined her government’s policies in parliament and promised immediate economic stimulation.

The agenda follows the policies of predecessor and Pheu Thai Party ally, Srettha Thavisin, recently removed by a court decision.

This week, the government announced it would distribute 145 billion baht ($4.3 billion), about a third of its “digital wallet” stimulus programme this month, ahead of schedule, to support vulnerable groups.

This measure, originally planned for the last quarter of this year, forms the core of the government’s strategy to revive Southeast Asia’s second-largest economy, which saw a 2.3% growth in the second quarter of 2024, following last year’s growth of 1.9%, lagging behind regional peers.