Consumer Confidence Surges For Third Month As Aid Boosts Spending

Consumer confidence in August improved for the third consecutive month, reaching its highest level since March, boosted by the Thailand Helps Thailand Plus stimulus programme that channeled 140 billion baht into the system. Thanavorn Polvichey, rector and chair of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said the consumer confidence index rose continuously for a third month to its six-month high since March, as consumers shed worries over US-Israel-Iran conflict, which eased global and domestic oil prices. The government's Thailand Helps Thailand Plus programme continued for a third month, injecting over 140 billion baht into the economy, while strong agricultural prices further boosted consumer spending.

"Although August consumer confidence improved, September and October will be a turning point with challenges," Thanavorn said. "The Thailand Helps Thailand Plus stimulus will end, and if Middle East tensions flare again, oil could approach 100 dollars per barrel. Consumers are also growing anxious about government stability and legal cases, which could reverse economic recovery. However, if political trouble doesn't arise and oil prices remain moderate, the Thai economy could grow by 2.3 percent."

Umakamol Sundarunsurat, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, noted that the August consumer confidence index improved for a third consecutive month, rising from 51.8 to 53.2, but remained well below 100, indicating consumers still see the economy recovering slowly with high living costs.

Wachira Kuntaveetep, acting deputy rector for strategy and dean of economics, reported that the Chamber of Commerce confidence index rose across nearly all measures in August, particularly in future consumption, investment, tourism, and agriculture. Only cross-border trade fell 0.6 points and employment fell 0.6 points. The overall Chamber index rose to 41.8, up 0.3 points from the previous month, supported by the Thailand Helps Thailand Plus programme boosting purchasing power, continued export growth, and the government's extension of the 7 percent VAT rate for another year.