Consumer confidence index falls below 50 in September

Thailand’s consumer confidence index fell to 48.9 in September, down from 49.5 a month earlier, as people remained concerned about the cost of living, household debt and political instability.

The Office of Trade Policy and Strategy (OTPS) at the Commerce Ministry surveyed 5,424 people from various occupations nationwide.

The findings showed that the government’s Thai Chuay Thai Plus scheme had helped ease the cost-of-living burden and boost purchasing power. Exports were also growing, but consumers remained concerned about political uncertainty and global economic instability.

OTPS said the current consumer confidence index stood at 39.3, while the index for the next three months was projected to rise to 55.3.

Factors expected to boost consumer confidence include the Thai Chuay Thai Plus scheme and export growth, particularly in electronics and high-tech goods. However, factors weighing on confidence include household and business debt, as well as geopolitical conflicts that are driving up global oil prices, logistics costs and goods prices.

OTPS said the survey was conducted before the floods and therefore did not reflect the actual impact of the flooding on consumer confidence.

Drawing lessons from the major floods of 2011, the agency said the current flooding would affect the economy, employment and consumer confidence. The extent of the impact would depend on the severity and duration of the floods.