Consumer confidence up for first time in 8 months

Consumer confidence in Thailand rose for the first time in eight months in October, helped by government economic measures, an interest rate cut and improved economic conditions, a survey showed on Thursday.
The consumer index of the University of the Thai Chamber of Commerce (UTCC) increased to 56.0 in October from 55.3 the previous month, the university said in a statement.
A floods problem has eased while government cash handouts have allowed consumers to spend more, UTCC president Thanavath Phonvichai told a press conference.
In late September, the government rolled out the first phase of its flagship $14 billion stimulus scheme, which aims to deliver 10,000 baht (US$285) each to about 45 million people. The first tranche reached about $14.5 million people.
Last month, the Bank of Thailand (BoT) unexpectedly cut the key interest rate by a quarter point to 2.25%, the first reduction since 2020, to help ease borrowers’ debt burden.
However, consumers still felt the economic recovery was slow and the cost of living was high, Mr Thanavath said.
“The economic atmosphere is said to be good, but consumers are still not confident in buying durable goods. They are not confident in travelling, buying cars or houses,” he said.
Finance Minister Pichai Chunhavajira said on Wednesday the government would consider more economic measures next week as it targets growth of 3.5% next year after 2.7% growth expected this year.
Southeast Asia’s second-largest economy grew just 1.9% last year, lagging peers.