Thailand Consumer Sentiment Falls to 3-1/2- Year Low

The University of the Thai Chamber of Commerce’s Consumer Confidence Index fell to 49.5 in May 2026 from 50.6 in the previous month, marking its lowest level since November 2022. The decline was largely driven by concerns over tensions in the Middle East and persistently high oil prices, which are expected to raise living costs and weigh on economic growth. To help ease cost-of-living pressures, authorities have launched a THB 176 billion consumer subsidy program. Nevertheless, the university said consumers are likely to remain cautious about spending in the near term amid uncertainty surrounding regional developments and the effectiveness of government support measures.

The University of the Thai Chamber of Commerce’s Consumer Confidence Index declined to 50.6 in April 2026 from 51.8 in March, marking the lowest level since last August. The decline came amid higher energy prices due to the impact of conflicts in the Middle East, while farmers face higher fertilizer costs and weaker prices for their products. As a result, households trimmed discretionary spending, which could slow the wider economy. Confidence in the overall economy, employment, and future income weakened, while both investment and consumption eased. However, positive sentiment stemming from stable policies and government measures to support living costs for vulnerable groups helped limit the fall. Government efforts to ease prices for consumer goods and support vulnerable groups, along with improving tourist arrivals, could help some service businesses.

The University of the Thai Chamber of Commerce’s Consumer Confidence Index fell to 51.8 in March 2026, marking its lowest level in six months and down from 53.7 in February. Confidence in the overall economy weakened, with both current conditions and future expectations deteriorating. This decline reflects growing concerns that geopolitical tensions and rising oil prices will weigh on economic growth, while household incomes continue to lag behind increasing living costs. Job market sentiment also softened. Expectations regarding current employment opportunities declined, although respondents remained somewhat optimistic about future prospects. Similarly, the income outlook worsened, with approximately 96.5% of consumers expecting their income over the next six months to either decline or remain unchanged. In contrast, domestic political stability is expected to support confidence among consumers and investors, providing some underlying resilience to the broader economic outlook.