Thailand’s consumer confidence has continued to surge for the 11th consecutive month, reaching its highest level in 38 months. Experts attribute this remarkable increase to several factors, including a decline in COVID-19 infections, the recovery of domestic tourism, and vibrant election campaigns taking place nationwide.
According to the University of the Thai Chamber of Commerce (UTCC), the consumer confidence index rose from 53.8 in March to 55 in April. However, despite the consistent upward trend, the index still remains below 100 points due to concerns over weak purchasing power, high inflation, and interest rates.
UTCC President Thanavath Phonvichai credits the government’s economic stimulus measures, such as the “We Travel Together” hotel subsidy and state aid programs, for bolstering consumer confidence. Moreover, the increase in tourist arrivals during the Songkran Festival, along with reduced gasoline and diesel prices within the country, and a slight appreciation of the baht against the US dollar, all contributed to the boost in consumer confidence throughout April.
Nevertheless, while consumer confidence has seen significant improvement, apprehensions persist regarding the high cost of living, including expensive electricity bills, as well as the state of the global financial situation. President Thanavath Phonvichai cautioned that economic slowdowns in the US and EU, the ongoing Russia-Ukraine conflict, and the escalating interest rates could exert pressure on the global economy, potentially leading to a recession that may impact Thai exports and purchasing power.
In addition to tracking consumer sentiment, the UTCC also released the TCC Confidence Index, which measures the outlook of the business sector and members of the Thai Chamber of Commerce across every province. The index climbed to 51.9 in April, up from 50.5 in March, driven by the recovery in tourism and higher prices of agricultural products. However, business operators expressed concerns regarding factors that continue to impact confidence, such as the persistent PM2.5 pollution issue affecting the tourism industry, as well as rising electricity costs and proposed minimum wage hikes by certain political parties.
