Thailand Personal Spending Falls Most Since 2021

Private consumption in Thailand fell 2.1% month-on-month in April 2026, slipping further from a 0.8% decline in the previous month. It marked the steepest contraction since July 2021, mainly driven by weaker spending on non-durable goods, including consumer goods and fuel, amid higher energy costs that raised the cost of living, as well as adjustments in working and travel patterns amid significantly higher energy prices. The services index declined, weighed down by softer activity in hotels and restaurants, while expenditure by non-residents decreased. Meanwhile, consumer confidence decline amid energy prices linked to ongoing conflicts in the Middle East.

Private consumption in Thailand fell 0.8% month-on-month in March 2026, easing from a 1.8% fall in the previous month. Still, this marked a second consecutive monthly decline, driven largely by weaker spending on services, particularly hotels and restaurants amid subdued tourism activties. Consumption of semi-durable goods also decreased, weighed down by reduced imports of textiles and apparel as well as softer retail sales. In contrast, spending on non-durable goods increased, supported by higher purchases of fuel and consumer goods, as households responded to concerns over rising prices. Spending on durable goods also rose, underpinned by strong passenger car sales. Meanwhile, consumer confidence weakened, reflecting heightened concerns over spillovers from geopolitical tensions in the Middle East, particularly the risk of higher energy prices, which could add upward pressure to production and transportation costs.

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.