Consumer confidence fell for the first time in eight months in March due to slow economic recovery and higher living costs, a survey showed on Wednesday.
The consumer index of the University of the Thai Chamber of Commerce dropped to 63.0 from 63.8 in February, the university said in a statement.
Consumers were beginning to worry about the performance of the economy and higher energy prices, the survey said, but confidence could improve in the future as government spending quickens after a delayed budget was passed.
Southeast Asia's second-largest economy unexpectedly shrank 0.6% in the final quarter of 2023 from the third quarter. Full-year 2023 growth was 1.9%, slower than expected and less than the 2.5% expansion in 2022. The state planning agency cut its 2024 growth outlook to between 2.2% and 3.2% from the 2.7% to 3.7% earlier projected. In February, the Bank of Thailand lowered its 2024 growth outlook to 2.5%-3.0% from 3.2%.
The government has repeatedly urged the central bank to cut interest rates from the current 2.5% to support economic recovery. The central bank was due to announce the outcome of its latest monetary policy meeting later on Wednesday.