The Consumer Confidence Index (CCI) fell to 49.5 in May, the lowest level since December 2022, the University of the Thai Chamber of Commerce (UTCC) said on Thursday.
The drop was mainly attributed to concerns over the Middle East war and persistently high oil prices, which are expected to weigh on Thailand’s economic growth and raise the cost of living, the university’s Centre for Economic and Business Forecasting said.
Indices measuring confidence in the overall economy, employment opportunities and future income stood at 43.1, 47.5 and 57.9, respectively in May, down from 44.1, 48.6 and 59.0 in April.
As all three indicators remained below the standard benchmark level of 100, they highlighted a persistent lack of confidence among consumers in the economic outlook, employment prospects and future earnings, said the centre.
Current consumer confidence decreased from 34.7 in April to 33.6 in May, while the Future Confidence Index fell from 58.3 to 57.3.
The UTCC anticipates that consumers will remain cautious about spending throughout the first half of this year as they await greater clarity on the Middle East, especially the potential for escalation and the resolution timeline.
Consumers are also closely watching government measures to mitigate the impact of the conflict and rising energy prices, as well as the effectiveness and timelines of economic stimulus initiatives for restoring confidence.
The centre said the CCI for June would be an important indicator of whether confidence in the economy is beginning to recover, both in the short term and in the future, since the government's “Thais Help Thais Plus” co-payment scheme began on June 1 and will run through the end of September.
