Thailand’s consumer confidence fell for the seventh consecutive month in August, reaching its lowest level in 32 months, according to a recent survey. The decline is attributed to concerns over a slow economic recovery, political instability, and ongoing US tariffs.
However, there is potential for optimism, especially with the new government’s initiatives, said Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, which conducted the survey.
The university’s consumer sentiment index decreased to 50.1 in August from 51.7 in July. Notably, the survey was carried out before Prime Minister Anutin Charnvirakul’s recent election victory.
“Consumer confidence indices across the board have continued to decline, indicating possible further drops if political stability remains fragile and the economy does not recover quickly through government stimulus measures,” Thanavath explained during a press conference.
He emphasized that the new government’s success in delivering tangible results would be crucial in reversing this downward trend.
“Our outlook remains cautiously optimistic, as confidence could rebound next month during a period where positive views and hopes for Prime Minister Anutin’s leadership are high,” Thanavath added.
PM Anutin has indicated plans to revitalize Thailand’s struggling economy, including his commitment to revive the popular Khon La Khrueng co-payment stimulus scheme.
The country’s economic growth is projected to be between 1.8% and 2.3% this year, according to the National Economic and Social Development Council, lagging behind other regional economies that grew by 2.5% last year.
Despite the US reducing tariffs on Thai goods from 36% to 19%, uncertainties remain regarding tariffs on transshipments through Thailand from third countries.
Regarding global trade tensions, Thanavath noted that Thailand should maintain its competitiveness and stressed that the exchange rate stability of the baht is essential. The baht has appreciated by 8% against the US dollar this year, making it the second-strongest among Asian currencies.