Consumer confidence in Thailand has decreased for the sixth straight month in August, reaching its lowest level in 13 months. This decline is attributed to worries about sluggish economic growth and rising living costs amidst uncertainty regarding the new government’s policies, according to a survey released on Thursday.
The consumer confidence index, conducted by the University of the Thai Chamber of Commerce (UTCC), dropped to 56.5 in August, down from 57.7 the month prior.
Consumers perceive the overall economic situation as recovering slowly, with high living costs continuing to impact their outlook. The university noted that “Consumers are less optimistic about the economy’s rapid recovery, even though the current political situation appears to be stabilizing, as they have yet to see clear and effective economic stimulus measures from the government.”
There is potential for improved confidence if the government accelerates budget disbursement and implements actions that visibly stimulate the economy later this year, according to UTCC.
The ongoing decline in consumer confidence follows the new Prime Minister Paetongtarn Shinawatra’s announcement of her government’s policies in parliament, where she emphasized her commitment to immediate economic stimulation. Her agenda is a continuation of the strategies laid out by her predecessor, Srettha Thavisin, who was removed by a court ruling.
This week, the government announced plans to distribute 145 billion baht (approximately US$4.3 billion), about one-third of its “digital wallet” stimulus initiative, earlier than initially planned, to support vulnerable populations. This measure, initially set to begin in the last quarter of this year, is a key component of the government’s efforts to rejuvenate Southeast Asia’s second-largest economy, which saw a 2.3% growth in the second quarter of 2024, following last year’s growth of just 1.9%—a performance that has fallen behind regional counterparts.
