Bangkok: The Consumer Confidence Index for July 2015 fell across all categories for the sixth consecutive month, reaching its lowest level in 31 months. Dr. Thanawat Phonwichai, President of the University of the Thai Chamber of Commerce, noted that the decline is attributed to consumer concerns about the stability of the Thai government and politics, the trade war stemming from the Trump 2.0 policy, as well as the ongoing conflict between Thailand and Cambodia, despite a ceasefire. Consumers perceive the Thai economy as continuing to slow down. This sentiment persists despite the government’s economic stimulus measures and the Bank of Thailand’s accommodative monetary policy, which included two 0.5% year-on-year interest rate cuts since the beginning of the year.
According to Thai News Agency, the Overall Economic Confidence Index, the Overall Job Opportunity Confidence Index, and the Future Income Confidence Index stood at 45.6, 49.8, and 59.6, respectively. These figures represent six consecutive months of decline across all items, down from June’s 46.7, 50.6, and 60.9, respectively. The index remaining below the normal level of 100 indicates that consumers remain unconfident about the economic situation, job opportunities, and future income. Concerns about the domestic political situation, the high cost of living, and the risk of a global economic slowdown due to the ongoing trade war are impacting the Thai economy and employment, potentially leading to a slower recovery in the future and a high level of uncertainty for consumers’ future income.
The Consumer Confidence Index (CCI) decreased from 52.7 to 51.7, marking the sixth consecutive month of decline and its lowest level in 31 months since January 2023. The overall Consumer Confidence Index remaining below 100 suggests that consumers continue to perceive the economic situation as slow to recover, with the high cost of living and trade war threats continuing to erode consumer confidence, both current and future.
Current consumer confidence fell from 37.6 to 36.7, while the Future Confidence Index decreased from 60.1 to 58.9. The decline in the Consumer Confidence Index across all items for the fifth consecutive month indicates that consumers are beginning to feel less confident about their future if Thai politics become unstable and the economy cannot recover quickly under the government’s economic stimulus measures.