Thai Consumer Confidence Drops

BANGKOK (Reuters) – Thai consumer confidence fell for the seventh month in September, reaching its lowest level in 17 months mainly due to concerns about slow economic growth and regional flooding.

According to a survey conducted by the University of the Thai Chamber of Commerce, the consumer index dropped to 55.3 in September, down from 56.5 in August.

Flooding and rising living costs negatively impacted consumer sentiment, despite government handouts for vulnerable populations. University president Thanavath Phonvichai stated, "The floods have a psychological impact, overshadowing the positive sentiment of the handout scheme."

In an effort to stimulate the economy, the government recently launched phase one of its $14 billion stimulus handout scheme. This initiative is designed to distribute 10,000 baht ($298) each to an estimated 45 million people over six months, aimed at encouraging economic activity.

Initially, 14.5 million welfare card holders and disabled individuals will receive the cash handouts. The government aims to implement this scheme in the last quarter of the year as part of its strategy to revive Southeast Asia's second-largest economy, which grew 2.3% in Q2 2024.

The central bank anticipates a 2.6% economic growth this year, following a growth of 1.9% last year, which lagged behind other regional economies.

($1 = 33.5300 baht)