Economic decline deepens as consumer confidence dives

Thailand’s economy remained sluggish in August as private consumption slowed, farm incomes declined, and exports softened due to the impact of US tariffs, according to the Fiscal Policy Office (FPO).

- WICHIT CHANTANUSORNSIRI

Pornchai Thiraveja, director-general of the FPO, reported yesterday that private consumption in August decelerated compared to the corresponding period last year, particularly in durable goods.

The number of newly registered motorcycles and passenger cars for the period decreased by 1.8% and 0.3% year-on-year, respectively, and also fell compared to the previous month after seasonal adjustments, by 3.0% and 4.8%.

According to Mr Pornchai, real farm income in August declined by 10.8% year-on-year, while the consumer confidence index dropped to 50.1, from 51.7 in the previous month. This reflected the slow pace of economic recovery, high costs of living, and concerns over geopolitical tensions.