Consumer confidence fell for the first time in eight months in March, attributed to a slow economic recovery and higher living costs, according to a survey by the University of the Thai Chamber of Commerce (UTCC).
Thanavath Phonvichai, president of the UTCC, said the consumer index dropped to 63.0 from 63.8 in February.
The dip in March was attributed to heightened concerns among consumers regarding the country's sluggish economic recovery, higher energy prices, the global economic slowdown, escalating conflicts in the Middle East as well as lower agricultural production due to the impact of the El Niño phenomenon.
An index reading below 100 points signifies weak confidence, related to the slow economic recovery, higher living costs, elevated interest rates, and geopolitical conflicts affecting consumer purchasing power and their confidence in spending.
A separate survey of chamber members from across the country marked a fourth consecutive month of growth, reaching 55.2, above the median of 50.
This reflects increasing confidence among business operators.
However, the increase is still stable due to the concentration of tourism in primary cities, the impact of the high level of PM2.5 in the northern region as well as prolonged drought which has severely impacted agricultural production.
However, the decline in public confidence is likely to persist in the short term but would improve in the future due to economic stimulus measures, particularly the digital wallet handout scheme, property stimulus measures, and the disbursement of state budget.
The extent of the economic impact of the digital wallet handout would depend on the aggregate amount and the timing of the implementation. If it's implemented in the fourth quarter, it would stimulate the economy by only 0.5% compared to 1-1.5% if following the original timeline set for May.
As for the method of payment, blockchain technology would be used to ensure the scheme will be transparent and corruption-free.