Thai consumer confidence at lowest in over two years in August
FILE PHOTO: People shop at a market in Bangkok, Thailand, May 2, 2024. REUTERS/Athit Perawongmetha/File Photo
BANGKOK : Thai consumer confidence dropped for a seventh consecutive month in August to its lowest level in 32 months due to concerns about a slow economic recovery, political instability, and U.S. tariffs, a survey showed on Thursday.
But sentiment could improve under Thailand's new government, said Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, which conducted the survey.
The university's consumer index fell to 50.1 in August from 51.7 in July, it said in a statement. The survey was conducted before the election of Anutin Charnvirakul as the country's new prime minister last week.
"Consumer confidence indices have continued to decline across the board, suggesting potential further drops if political stability falters and the economy fails to recover swiftly under government stimulus measures," Thanavath told a press conference.
The new government's ability to deliver outstanding and tangible results would be key to reversing the decline in confidence, he said.
"The downward trend in consumer confidence could reverse next month, driven by a honeymoon period where everyone holds positive views and hope regarding Prime Minister Anutin," Thanavath said. "We see this as optimistic," he added.
Anutin has signalled an intention to revive Thailand's struggling economy in his first cabinet appointments.
Southeast Asia's second-largest economy is projected to expand by 1.8 per cent to 2.3 per cent this year, according to the state planning agency. Last year's growth rate of 2.5 per cent lagged peers.
The United States has reduced its tariff on imported goods from Thailand to 19 per cent from 36 per cent, but there are still uncertainties relating to U.S. tariffs on transshipments via Thailand from third countries.
Regarding global trade wars, Thailand should remain competitive, Thanavath said. "The key concern lies with the baht, which should not become too strong."
The baht has strengthened 8 per cent against the dollar so far this year, making it the second-best performing currency among Asian currencies.
