Consumer confidence rose to its highest level in 64 months in August, driven by the growing economy and higher prices for many farm products such as fruits, corn and tapioca.
According to the latest survey by the University of the Thai Chamber of Commerce (UTCC), the consumer confidence index in August rose to 83.2 from 82.2 in July and 81.3 in June.
"Consumer sentiment has improved significantly, particularly in the middle-income group, as indicated by higher car sales and new home purchases," said Thanavath Phonvichai, vice-president for research at the UTCC. "People who live in manufacturing areas and tourist spots, in particular, also enjoyed the benefits of growing exports and tourism."
The Commerce Ministry reported on Aug 22 that Thailand's exports grew for a 17th straight month in July, elevating their performance in the first seven months to a seven-year high.
Customs-cleared exports rose 8.3% year-on-year in July, fetching US$20.2 billion (662 billion baht), after growing 8.2% in June and 11.4% in May.
Exports in baht terms rose by 4.1% compared with the same month of last year, to 662.17 billion baht.
Shipments to most markets except the Middle East and the US saw expansion, with extraordinary growth seen in Asean, India, South Asia, Russia and the Commonwealth of Independent States (CIS) and Japan, which reported double-digit increases.
Exports of agricultural and agro-industrial products rose 3.2% in July to $3.38 billion, boosted by higher shipments of sugar (+41%), frozen and processed chicken (+14.1%), canned tuna (+21.3%) and beverages (+14.2%).
Overall industrial product shipments have posted growth for 17 straight months, up 7.7% in July to $16.07 billion, led by goods related to oil (+36.6%), automobiles and parts (11.2%), and computers and components (+11.1%).
For the first seven months of 2018, Thai exports rose 10.6% to $146.23 billion. Exports in baht terms also edged up 1.2% from the same period of last year to 4.59 trillion baht.
Imports rose accordingly for the period by 14.8% to $143.29 billion, yielding a trade surplus of $2.93 billion.
Mr Thanavath said that the farm sector, rice and rubber particularly, still need monitoring, as their prices have yet to improve significantly.
Against all odds, the university is scheduled to raise its economic growth forecast from 4.6-5% growth, he said.
"Thailand's economic growth is likely to exceed 4.6%, as confidence has seen consecutive increases and consumers are spending more," Mr Thanavath said. "More importantly, we see any impact from the international trade row as unlikely within this year."