# Thai Consumer Confidence Plummets to Lowest Point in Over Two Years

- Link: https://www.thailand-business-news.com/economics/238551-thai-consumer-confidence-plummets-to-lowest-point-in-over-two-years
- Published: 2025-08-11T06:58:05+07:00
- Author: J. Allan

Thailand’s consumer confidence index has plunged for the sixth consecutive month
in July, reaching its lowest level in 31 months, according to a nationwide survey
released Thursday by the University of the Thai Chamber of Commerce (UTCC). 

## Key takeaways

 * Thailand’s consumer confidence index dropped to a 31-month low in July amid fears
   of economic stagnation and high living costs.
 * Uncertainty over U.S. tariffs and unclear transshipment rules are adding pressure
   on Thai trade and business sentiment.
 * Political instability, including the suspension of Prime Minister Paetongtarn,
   has further eroded consumer trust and economic outlook.

The decline is driven by deepening concerns over the sluggish domestic economy, 
rising living costs, geopolitical uncertainties, and heightened political instability.

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The index fell to 51.7 in July, down from 52.7 in June, underscoring the mounting
anxiety among Thai consumers. University president Thanavath Phonvichai warned that
consumer sentiment remains fragile and shows “no signs of recovery,” with purchasing
power still markedly weak.

> “The economy shows signs of stagnation and needs more stimulation,” Thanavath 
> told reporters, projecting that GDP growth may slow to just 1.7% in 2025, down
> from 2.5% last year.

### Global Headwinds and Trade Uncertainty

Ongoing global trade tensions are also taking a toll. Despite a recent reduction
in U.S. tariffs on Thai imports, from 36% to 19%, uncertainty remains around transshipment
rules, particularly for goods originating from third countries and routed through
Thailand.

> “What needs to be clearly defined is tariffs on transshipments. They must be explicitly
> outlined for businesses to adapt accordingly,” Thanavath stressed.

### Domestic Political Instability Weighs Heavily

On the domestic front, political uncertainty has further dampened confidence. The
recent suspension of Prime Minister Paetongtarn Shinawatra, pending a court ruling
over her controversial phone conversation with former Cambodian leader Hun Sen, 
has created fresh unease.

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> “The political situation remains unstable following the prime minister’s suspension
> from duty, creating an unclear outlook and undermining confidence,” Thanavath 
> added.

### A Call for Economic Stimulus

With household spending restrained by persistently high living costs and low consumer
morale, economists are calling for more decisive fiscal stimulus to prevent a prolonged
downturn.

> “People are holding back on spending. Without strong measures to revive the economy,
> we risk falling further behind our growth targets,” the UTCC said in its report.

As policymakers grapple with both global pressures and a volatile domestic landscape,
the path to economic recovery appears increasingly uncertain.