Consumer confidence fell for a fourth straight month in April, hitting a 10-month low as concerns persisted about the high cost of living, weak farm prices and the slower-than-expected economic recovery.
The University of the Thai Chamber of Commerce (UTCC) yesterday said the consumer confidence index fell to 76.6 points last month from 77.7 in March, 79.1 in February, 80.4 in January and 81.1 in December.
The April reading is the lowest since last June, when confidence began rising in hopes of an economic rebound after the May 22 coup ended months of political unrest.
The survey said consumer confidence in the overall economy fell to 66 points in April from 67.1 in March, while confidence in job openings and future income fell to 71.2 and 92.7 from 72 and 94.
"Consumer confidence continued to fall in April due mainly to the recent downward revision of this year's GDP estimate to 3.7% from 3.9% by the Fiscal Policy Office, the continued contraction in the country's exports and low farm product prices," said Thanavath Phonvichai, UTCC's vice-president for research.
The government recently slashed its full-year export growth forecast to 1.2% against 4% predicted earlier after exports shrank for a third straight month in March.
The Commerce Ministry late last month reported exports fell by 4.45% year-on-year in March to US$18.9 billion.
Farm exports fell by 2.6% year-on-year to $2.95 billion, dragged down by rubber, canned tuna and rice.
Industrial exports fell by 3.2% to $14.9 billion, with weak shipments of oil, oil-related products and gold.
For the first three months of 2015, exports totalled $53.4 billion, down by 4.69% from the year-earlier quarter.
Mr Thanavath said the surprise cut in the policy interest rate to 1.5% late last month could support an economic recovery during the rest of the year.
"It's a must for the government to step up budget disbursement and infrastructure investment to revive consumer confidence," he said.
"We also see it as essential for the central bank to cut its policy rate further at the next meeting to stimulate the economy and weaken the baht, which would also be good for tourism."