Consumer sentiment plunged for the first time in four months as people were concerned about low crop prices, especially rice.
The University of the Thai Chamber of Commerce (UTCC) reported yesterday that the consumer confidence index dropped to 73.1 points in October after three months of gains.
The index rose to 74.2 points in September, up from 73.2 in August, 72.5 in July, and 71.6 in June, a 25-month low.
"Despite growing exports, consumers felt concerned about a recovery in the domestic and global economy, while farm product prices, particularly for rice, remained relatively low," said Thanavath Phonvichai, vice-president for research at UTCC.
"We think consumption may gradually improve by the first quarter of next year thanks to accelerated spending and investment by the government and easing volatility of the world's economy."
Domestic prices of white paddy with 15% moisture are now quoted at 7,200-7,500 baht a tonne, much lower than 8,000-8,500 baht a tonne in the same period last year.
Hom Mali paddy with 15% moisture fetches 9,000-9,500 baht a tonne, down from 11,000-12,000 baht a tonne in the same period last year.
The Commerce Ministry reported late last month the country's exports expanded 3.4% year-on-year in September to US$19.5 billion (683 billion baht), the highest in two years. The surge helped narrow the nine-month contraction to 0.65% year-on-year to $160 billion.
Shipments rose in nearly all markets except the Middle East -- exports to that region fell by 18.9% year-on-year.
Exports to mature markets -- the US, the EU and Japan -- increased by 7% in September, while those to dynamic markets such as Asean, China, South Asia, Hong Kong, South Korea and Taiwan climbed up 3.7%.
The ministry said exports of agricultural and agribusiness products bounced back to grow for the first time in seven months, edging up 1.9% from September last year to $2.7 billion, boosted by higher shipments of vegetables and fruits, rice and frozen shrimp.
Exports of industrial products expanded for a second straight month, up 4.2% to $15.8 billion, driven notably by semiconductor devices and diodes, cars and car parts and chemicals.
The Commerce Ministry reported exports for the final quarter are definitely expected to grow.
Rising exports prompted the Thai National Shippers' Council to raise its forecast on Tuesday to between zero growth and a 0.8% contraction this year from its earlier projection of a 2% contraction.
The council also predicted exports will grow 0-1% next year.