Consumer confidence index plunges to lowest in 14 months
Damage to property and agriculture caused by floods are contributing to fall in consumer confidence index, UTCC says
The rising cost of living and the severe flooding in several areas of Thailand are among the reasons the consumer confidence index has once again dropped, the University of the Thai Chamber of Commerce (UTCC) said on Thursday.
UTCC’s Centre for Economic and Business Forecasting reported that Thailand's consumer confidence index in September stood at 55.3, dropping from 56.5 in July. The index has been falling for seven consecutive months and is now the lowest in 14 months, or since August 2023.
The decreasing index reflects consumers’ declining confidence in the recovery of the Thai economy despite the government's stimulus policies, UTCC president Thanawat Polvichai said.
He said that the main factors contributing to last month’s drop included the high cost of living and the floods that have damaged the agricultural sector as well as people’s properties.
“Consumers are less confident the economy will recover quickly, even following the 10,000-baht cash handout to vulnerable groups,” Thanawat said.
Thailand’s sluggish economic recovery has been made worse by the ongoing conflict in the Middle East that could affect energy prices, he added.
The UTCC called on the government to restore consumer confidence by reinforcing economic stability through suitable financial and monetary policies, promoting employment, reducing the cost of living, and investing in key infrastructure as well as in skill development for workers to prepare them for emerging industries.
