Thailand Personal Spending Drops Most Since 2021

Private consumption in Thailand fell 1.8% month-on-month in February 2026, reversing a 1.0% increase in the previous month. It marked the steepest decline since August 2021, partly driven by a pullback in durable goods spending, following a surge in purchases earlier as consumers rushed to buy electric vehicles before incentives under the EV 3.0 scheme expired. Moreover, manufacturing production weakened, with declines seen in petroleum due to planned refinery maintenance and in electrical appliances amid intensifying competition. The services sector also declined, with notable weakness in trade and hospitality, including hotels and restaurants. Meanwhile, consumer confidence edged up, supported by optimism over the central bank’s decision to cut interest rates to 1% and expectations of stimulus measures from a new government following last month’s elections.

Private consumption in Thailand rose by 1% month-on-month in January 2026, slowing from a 2.5% advance in the previous month. This marked the softest rise since May 2025, as spending momentum eased following the expiration of government stimulus measures, leading to weaker outlays on non-durable and semi-durable goods. However, demand for durable goods remained resilient, underpinned by stronger vehicle sales, particularly passenger cars, as buyers brought forward purchases ahead of the EV 3.0 incentive scheme and continued order deliveries. Services consumption also strengthened, driven by higher spending at hotels and restaurants in line with improved foreign tourism receipts. Meanwhile, consumer confidence edged up, supported by optimism over the formation of a new government and expectations of fresh policy support.

Private consumption indicators in Thailand climbed 2.5% month-on-month in December 2025, rebounding from a 0.3% fall in November and marking the sharpest rise since April 2022. Gains were broad-based across all spending categories, with growth in services spending led by hotels and restaurants, partly supported by government stimulus measures. Durable goods consumption also strengthened, driven by higher vehicle sales, including accelerated electric-vehicle purchases ahead of the EV 3.0 scheme expiration and new model launches at the Motor Expo. Spending on non-durable goods increased, reflecting higher fuel sales and consumer goods purchases, while semi-durable goods were supported by stronger imports of textiles and apparel. Looking ahead, momentum warrants close monitoring amid still-fragile purchasing power, potential normalization of vehicle purchases, and a decline in consumer confidence from the previous month.