Thai consumer confidence took another hit in September, marking the seventh consecutive month of decline and reaching a 17-month low. The main factors contributing to this decline were concerns about the slow economic growth and recent floods in certain parts of the country, according to a survey conducted by the University of the Thai Chamber of Commerce.
The consumer confidence index dropped to 55.3 in September, down from 56.5 in the previous month. The university highlighted that the ongoing floods and high living costs were significant factors affecting consumer sentiment, despite the government’s recent financial assistance initiatives for millions of people.
University president Thanavath Phonvichai emphasized that the floods had a psychological impact on consumers, overshadowing the positive effects of the government’s handout scheme. The government had introduced a program offering 10,000 baht for recipients to spend within six months in an effort to stimulate economic activity. The first phase of this initiative targeted 14.5 million welfare cardholders and disabled individuals, who received their payments in cash rather than digital money as initially planned.
This handout scheme represents a key component of the government’s strategy to revitalize Thailand’s economy, which saw a modest 2.3% growth in the second quarter of 2024. The Bank of Thailand has projected a 2.6% growth rate for the year, following last year’s expansion of 1.9% that lagged behind other regional economies.
Despite these challenging circumstances, there is hope that the government’s financial assistance programs will encourage consumer spending and drive economic recovery. The handout initiative aims to boost domestic consumption and overall economic growth, offering a glimmer of optimism amidst the current economic uncertainties in Thailand.
