BANGKOK: Thai consumer confidence dropped for a fourth consecutive month in May, falling to its lowest level in 27 months, due to concerns over US tariffs and a sluggish economy, a survey showed on Thursday (Jun 12).
The consumer index of the University of the Thai Chamber of Commerce fell to 54.2 in May from 55.4 in the previous month, the university said in a statement.
“The current situation clearly indicates that from the consumers’ perspective, the economy is not good, with no signs of recovering,” university president Thanavath Phonvichai told a press conference.
Thailand will face a 36 per cent US tariff if it fails to negotiate a reduction before a moratorium expires in July. A tariff of 10 per cent has been set for most nations while the moratorium is in place.
Southeast Asia’s second largest economy has yet to begin negotiations with the United States.
“At this time, it is unclear whether Thailand will be able to negotiate successfully in time,” Thanavath said.
The estimated damage to the economy from lost exports and tourism revenues will be around 150 billion to 200 billion baht (US$4.6 billion-US$6.2 billion), he added.
Last month, Thailand’s state planning agency slashed its growth forecast range by one percentage point to 1.3 per cent to 2.3 per cent this year, warning that the impact of the tariffs would last for two years.
