Thai consumer confidence drops to 13-month low in August as growth slows

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 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 saw the overall economic situation as recovering slowly and the cost of living was high, the university said.

“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,” it said.

Confidence might improve if the government accelerates budget disbursement and boosts the economy to clearly recover later this year, the university said.

Consumer confidence has continued to fall as new Prime Minister Paetongtarn Shinawatra, who took office last month, outlined her government’s policies at parliament on Thursday as she has promised to stimulate the economy right away.

The agenda is a continuation of the policies of predecessor and Pheu Thai Party ally Srettha Thavisin, who was removed by a court decision.

The government said this week that it would distribute 145 billion baht ($4.3 billion), about a third of its “digital wallet” stimulus programme this month, earlier than scheduled, to support vulnerable groups.

The measure, which was scheduled for rollout in the last quarter of this year, is the cornerstone of the government’s plans to kickstart Southeast Asia’s second-largest economy, which expand 2.3% in the second quarter of 2024.

Last year’s growth was 1.9%, lagging regional peers.