Consumer confidence slips to 14-month low
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Consumer confidence slips to 14-month low

Index drops for 7th consecutive month

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Thai consumer confidence dropped for a seventh consecutive month in September to a 14-month low, attributed to concerns over a global economic slowdown and the floods in the country.

In addition, the ongoing conflict in the Middle East could exacerbate Thailand's sluggish economic recovery, according to a survey by the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, president of the UTCC, said the consumer confidence index dipped to 55.3 in September, down from 56.5 in August.

Consumers view the economy as recovering slowly and the cost of living as high, the university said.

"Consumers are less confident the economy will recover quickly, even following the 10,000-baht cash handout to vulnerable groups," said Mr Thanavath.

"Damage from severe floods in northern Thailand has sparked fears over the potential for a similar result in the central plains."

He said the Thai Chamber of Commerce and UTCC estimate that the cost of flood damage in 2024 would reach 30-40 billion baht, or 0.21% of GDP.

As of Sept 18, the assessment found the agricultural sector has been severely affected, with the damage estimated at 27.4 billion baht, followed by the service sector (9.2 billion baht) and industrial sector (287 million baht).

A separate survey of chamber members from across the country edged down to 49.4 in September from 50.5 in August, with the decline attributed to a lack of consumer confidence in a swift recovery of the economy, particularly amid declining consumer purchasing power and the high level of household debt.

Following the US Federal Reserve's rate cut, the UTCC wants the Bank of Thailand to consider cutting interest rates to reduce the burden of household debt and to maintain the value of the baht.

Companies also want the government to implement measures to tighten control over online sales and the influx of Chinese imports, noted the UTCC.

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