Consumer confidence rose for the second straight month in February, boosted by the upcoming general election and the return of Chinese tourists.
According to the latest survey by the University of the Thai Chamber of Commerce (UTCC), the consumer confidence index rose to 82 points from 80.7 in January after registering 79.4 in December, 80.5 in November, 81.3 in October, 82.3 in September and 83.2 in August.
"Ongoing active election campaigns by political parties and the revival of Chinese tourists have given a boost to consumer confidence," said Thanavath Phonvichai, vice-president for research at the UTCC.
He said the easing trade war between China and the US and improving prices for many agricultural products, the positive report by the National Economic and Social Development Council on economic growth in the final quarter of last year, and the Bank of Thailand's rate pause also helped raise consumer confidence.
The state planning agency reported on Feb 18 that the country's GDP rose 3.7% in the last quarter of 2018, up from a revised 3.2% in the third quarter.
After seasonal adjustment, the economy grew by 0.8% quarter-to-quarter from the third quarter.
The expansion in the fourth quarter was supported by private consumption and private investment, gains in the export of goods and services, the acceleration of wholesale and retail trade, hotels and restaurants, and the transport and communication sectors.
Government consumption softened while the agriculture and construction sectors slowed.
The economy expanded 4.1% for the full year, compared with a revised 4% for 2017, the quickest expansion in six years.
Export value grew by 7.7%, while private consumption and total investment grew by 4.6% and 3.8%, respectively. Headline inflation averaged 1.1% and the current account recorded a surplus of 7.4% of GDP.
Mr Thanavath warned that negative factors still exist, including a 5.7% year-on-year contraction of Thailand's outbound shipments in January, higher domestic oil prices and concerns about air pollution and the trade war.
Most consumers still feel that the economic recovery is slow and remains limited to certain regions.
Mr Thanavath said the economy in the first half of 2019 is unlikely to operate at full throttle, due to a lack of new economic impetus or stimulus measures, as Thailand will be in a transitional period while the next government is established.
"Once the next government is formed, new economic stimulus measures are anticipated late in the third quarter," he said.
The UTCC forecasts Thailand's economy to grow by an average 3.8% or in a range of 3.7-4.2% this year.