Consumer confidence index lowest in 13 months

The consumer confidence index for August 2024 was at its lowest level in 13 months, due to concerns about slow economic recovery and unclear economic stimulus measures from the new government. The University of the Thai Chamber of Commerce expects that if the digital wallet is ready in Q4/2024, it will support the Thai economy to grow by 2.6-2.8% this year. The Economic and Business Forecasting Center of the University of the Thai Chamber of Commerce revealed the results of the Consumer Confidence Index survey for August 2024, which found that the Consumer Confidence Index had continuously decreased for the 6th month and was at its lowest level in 13 months since August 2023 onwards. This is because consumers are concerned about the Thai economy, which is still slowing down and recovering slowly because there are still no clear economic stimulus measures from the new government. In addition, energy prices have increased and consumers are still concerned about the slowing global economic situation. The war in the Middle East and the war between Russia and Ukraine, which are still ongoing, may be factors that increase the pressure on the slow recovery of the Thai economy. Meanwhile, the overall economic confidence index, overall job opportunity confidence index, and future income confidence index were at 50.2, 53.9, and 65.6, respectively, decreasing for the sixth consecutive month compared to the indexes in July, which were at 51.3, 54.9, and 66.8, respectively. The fact that the indexes are still below normal (at 100) indicates that consumers are still not confident about the economic situation, job opportunity, and future income because they are concerned about the domestic political situation, energy prices, and cost of living that are still high, as well as the global economy that is at risk of slowing down, which will affect the Thai economy and employment and may have a slow recovery in the future, which will make consumers' future income highly uncertain. PR_UTCC The Consumer Confidence Index (CCI) ha s decreased from 57.7 to 56.5, the sixth consecutive month of adjustment and the lowest level in 13 months since August 2023. The fact that the overall consumer confidence index remains below 100 indicates that consumers still see the overall economic situation as still recovering slowly and the high cost of living, as well as the ongoing war between Russia and Ukraine, Israel and Hamas in the Gaza Strip, having a negative psychological impact on domestic purchasing power, the tourism sector, the export sector, general businesses, and future employment, which still has the potential to continuously undermine current and future consumer confidence in the near future. Current consumer confidence fell from 41.5 to 40.4, while the future confidence index fell from 65.4 to 64.3. The fact that the consumer confidence index has continued to decline for the sixth month in all categories indicates that consumers are becoming less certain that the economy will recover quickly, even though the current political situati on has stabilized from the consumer perspective, as people have yet to see clear and tangible economic stimulus measures from the government. However, consumer confidence is likely to continue to improve in the near future if the government accelerates budget disbursement and stimulates the Thai economy to recover tangibly through the 10,000-baht digital wallet project in late Q3 within Q4 of this year, which should allow the Thai economy to expand by 2.6-2.8% this year. However, if there is no digital wallet project, the Thai economy will expand by only 2.4-2.6%. Source: Thai News Agency