# Thai Consumer Confidence Declines in April Due to Trade Tensions and Economic Worries

- Link: https://www.thailand-business-news.com/economics/220623-thai-consumer-confidence-declines-in-april-due-to-trade-tensions-and-economic-worries
- Published: 2025-05-20T08:03:00+07:00
- Author: J. Allan

Consumer confidence in Thailand declined in April, reflecting growing public concern
over economic uncertainty and external pressures. Economists suggest that unless
decisive measures are taken to stabilize the economy, confidence levels may continue
to waver in the coming months.

## Key takeaways

 * Thailand’s consumer confidence fell in April, signaling growing concern over 
   economic uncertainty and stagnant purchasing power.
 * Fears of steep U.S. tariffs and unresolved trade negotiations are weighing heavily
   on public sentiment and export prospects.
 * With weakened spending and lowered growth forecasts, policymakers face mounting
   pressure to boost domestic demand amid global headwinds.

The University of the Thai Chamber of Commerce (UTCC) reported that its consumer
confidence index dropped to 55.4, down from 56.7 in March. This marks a continued
downward trend, underscoring stagnant purchasing power and weakened public sentiment.

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Ongoing [trade tensions](https://www.thailand-business-news.com/trade/218297-commerce-ministry-strengthens-trade-resilience-amid-u-s-policy-shifts)
and growing economic uncertainties have continued to weigh heavily on Thai consumers,
leading to a further decline in confidence levels in April. Analysts suggest that
concerns over global market instability and domestic economic challenges are driving
this downward trend. Experts warn that unless significant measures are taken to 
address these issues, the outlook for consumer confidence may remain bleak in the
coming months.

A moratorium currently limits U.S. tariffs to 10% for most countries, including 
Thailand. However, if a new agreement is not reached by July, [Thai exports](https://www.thailand-business-news.com/topics/exports)
could be hit with a steep 36% tariff. Such a development would have significant 
implications for the country’s export-driven economy.

Consumers are showing increased hesitation in making large financial commitments,
with spending on durable goods, real estate, automobiles, and travel being notably
subdued. 

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This cautious approach suggests that economic confidence remains fragile and that
many households are prioritizing savings over discretionary spending.

The potential for higher U.S. tariffs has also raised alarms about its broader impact
on the national economy. If the current 10% tariff remains in place for most countries,
Thailand’s GDP growth could be reduced by as much as one percentage point this year,
according to UTCC projections.

[The International Monetary Fund (IMF) has revised Thailand’s economic growth forecast for 2025 downward to 1.8%](https://www.thailand-business-news.com/economics/218016-imf-lowers-thailands-2025-growth-projection-to-1-8-highlights-four-major-economic-risks),
lowering it from an earlier projection of over 2%. The downward revision reflects
concerns over slower-than-expected recovery in key sectors, including tourism and
exports

In addition to trade-related pressures, Thailand is facing the effects of a global
economic slowdown. Earlier this month, the Finance Ministry revised its 2025 economic
growth forecast downward from 3% to 2.1%, citing external factors such as declining
global demand and the uncertain trade environment. The economy grew by 2.5% last
year, trailing behind many of its regional peers in Southeast Asia.

With consumer confidence slipping and key external risks looming, Thailand’s economic
outlook remains cautious.

Policymakers are likely to face increased pressure to introduce measures that support
domestic consumption and mitigate the impact of global trade dynamics in the coming
months.

Last week the [Thai government has decided to cancel its planned 10,000-baht](https://www.thailand-business-news.com/economics/220614-thai-government-scraps-10000-baht-handout-considers-new-budget-stimulus-plan)
digital wallet handout, originally intended for 2.7 million young people aged 16–
20, and redirect over 150 billion baht toward a new economic stimulus plan.