Thai Consumer Confidence Hits 13-Month Low Amid Economic Growth Concerns
Thai consumer confidence has dropped for the sixth consecutive month in August to a 13-month low, according to a survey conducted by the University of the Thai Chamber of Commerce. The consumer index fell to 56.5 in August from 57.7 in the previous month, reflecting concerns about slow economic growth and high living costs amid uncertainty over the new government's policies.
Consumers are feeling less confident about the economy's quick recovery, as they have not yet seen clear and tangible economic stimulus measures from the government. However, there is hope that confidence might improve if the government accelerates budget disbursement and boosts the economy for a clear recovery later this year.
New Prime Minister Paetongtarn Shinawatra has outlined her government's policies, promising to stimulate the economy right away. The government plans to distribute 145 billion baht ($4.3 billion) earlier than scheduled, as part of its "digital wallet" stimulus program to support vulnerable groups and kickstart Southeast Asia's second-largest economy.
The government's efforts aim to improve the country's economic growth, which expanded by 2.3% in the second quarter of 2024, trailing behind regional peers. Last year's growth was 1.9%, highlighting the need for significant economic stimulus measures to support recovery.
As an investor, it is crucial to monitor consumer confidence levels and government policies to assess the potential impact on the economy and financial markets. By staying informed and making informed investment decisions, investors can navigate market volatility and seize opportunities for growth and wealth creation.