Consumer, Business Confidence Fall in September Due to Floods, Fuel
Consumer and business confidence indices fell in September amid flood worries, high fuel prices, and political concerns. Officials said spending could rebound in mid‑November if floods ease and fuel prices stay stable, helped by a new stimulus package and insurance payouts, keeping Thailand’s growth target of 2.2‑2.5% achievable.
The Center for Economic and Business Forecasting at the University of the Thai Chamber of Commerce revealed that the consumer confidence index dropped for the first time in four months, falling from 53.2 to 52.1, while the business confidence index slipped from 41.8 to 41.2. Both declines were driven by flood concerns, high diesel prices exceeding 40 baht per litre, and increasing apprehension about future political stability. Speakers said that if floods subside and fuel prices do not rise sharply, consumer spending is expected to improve from mid‑November, bolstered by the second phase of the Thai Chai Thai Plus programme injecting 40 billion baht into the economy and additional insurance payouts, keeping the annual GDP growth goal of 2.2‑2.5% within reach. The business sector urged the government to act on six fronts: integrated water management and timely flood relief with early‑warning systems and drainage; control production costs, energy and fertilizer prices, and stabilise farm‑gate prices during harvest; stimulate year‑end tourism by promoting regional events such as the Udornthani World Horticulture Expo and targeting high‑value visitors; enhance liquidity and pre‑emptively tackle household and SME debt through low‑interest loan restructuring to maintain purchasing power and prevent bad debt; maintain exchange‑rate competitiveness and support hedging against foreign‑exchange risk; and continuously direct public investment funds to localities while upgrading workforce skills for future industries.
