Thai consumer confidence in August declined for the sixth consecutive month, reaching a 13-month low. The University of the Thai Chamber of Commerce reported that the consumer index dropped to 56.5 from 57.7 in the previous month. This drop is attributed to worries regarding sluggish economic growth, high living costs, and uncertainty surrounding the policies of the new government.
Consumers expressed views that the overall economic situation was gradually improving, but they remained concerned about the high cost of living. The lack of clear and effective economic stimulus measures from the government contributed to the dampened confidence levels among consumers.
There is hope that consumer confidence could see an upturn if the government expedites budget disbursement and takes actions to stimulate the economy for a clear recovery later in the year. The recent unveiling of policies by Prime Minister Paetongtarn Shinawatra, who succeeded the ousted Srettha Thavisin, has been met with expectations for immediate economic stimulation.
As part of its efforts to revitalize the economy, the government announced the early distribution of 145 billion baht ($4.3 billion) from its “digital wallet” stimulus program, originally planned for the last quarter of the year. This move aims to support vulnerable groups and jumpstart the Southeast Asia’s second-largest economy, which saw a modest 2.3% expansion in the second quarter of 2024, trailing behind regional counterparts. Last year, the country’s growth stood at 1.9%, underscoring the need for economic revitalization.
