The consumer confidence index dropped to 55.6 in July from 56.7 the previous month as consumers were concerned about household debt, says Fiscal Policy Office director-general Pornchai Thiraveja.
A press conference held by the National Economic and Social Development Council in July on the country's economic outlook announced that household debt rose 3.6% to 15.9 trillion baht in the first quarter of the year, accelerating slightly from the 3.5% increase recorded in the fourth quarter of 2022.
The ratio of household debt to GDP stood at 90.6%, representing a slight decrease from the previous quarter.
However, consumption in the category of durable goods has improved, as reflected in the number of sales of passenger cars and the number of newly registered motorcycles in July, an increase from the same period last year of 17.3% and 13%, respectively.
The collection of value-added tax (VAT) in July was 10.2% lower than the amount collected in July 2022 due to the decline in crude oil prices worldwide.
Income generated by the agricultural sectors in July contracted 1.6% from July 2022. However, VAT collected from domestic consumption in July increased by 1.1% compared to July 2022, a rise of 1.3% year-to-date
There was a more positive signal regarding private investment as reflected in the quantity of capital goods imported in July, representing a 6% increase over July 2022.
The volume of commercial vehicle sales in July fell 19.9% when compared with July 2022.
Investment in the construction category, as reflected in the volume of domestic cement sales in July, grew by 5.6% over July 2022, while the real estate transaction tax increased by 6.9% when compared with July 2022.
The value of merchandise exports contracted from the same period last year.
A vendor sells fresh produce at a fresh market in Bangkok. Thailand's headline inflation declined to 0.38% in July mainly from lower raw food prices, while core inflation declined to 0.86% due to the high base last year.
The total value of merchandise exports in July reached US$22.1 billion, a 6.2% contraction compared with July 2022, and, if considering only the value of exports excluding oil and related products, gold and consumables, it was found to have contracted by 2%, partly due to a decrease in the export of computer products, rubber products, gems and jewellery, plastic beads, chemicals, finished oil, rubber, canned and processed seafood, cassava products, and sugar.
However, products that continued to see a healthy expansion were: automobiles and parts; telephone equipment and parts; fresh, chilled, frozen and dried fruits; milk and milk products; and food seasonings.
Many of Thailand's major trading partners' markets declined in line with a slowdown in demand in those countries. However, many other markets continued to expand well, such as Hong Kong, the UK, Australia and the US, which grew by 9.7%, 5.8%, 2.4% and 0.9%, respectively.
Switzerland and Russia, classified among markets showing strong potential, expanded by 17.3% and 13%, respectively.
The supply side was supported by the rebound in the tourism sector. In July 2023, 2.49 million foreign tourists visited Thailand, representing an increase of 120% year-on-year. Most of the tourists were from China, Malaysia, South Korea, India and Vietnam. Domestic tourists tallied 19.8 million, representing an increase of 18.1% over July 2022.
In terms of the country's economic stability, headline inflation declined to 0.38% in July, mainly from lower raw food prices while core inflation fell to 0.86% due to the high base last year.
At the end of June, the public debt-to-GDP ratio stood at 61.2%, which is still "under control", according to 2018 State Financial and Fiscal Discipline Act.
New unemployment benefit applicants in July accounted for 0.61% of all persons insured under Section 33.
As for external stability, the situation remains stable and is able to support risks from global economic volatility, as reflected by the country's international reserves at the end of July, tallying $221 billion.