BANGKOK, Sept 3 — Thai consumer confidence fell for the eighth successive month in August to a 15-month low, as weak exports and a deadly bomb blast in the capital Bangkok hold back economic recovery, a university survey showed today.
The consumer confidence index of the University of the Thai Chamber of Commerce dropped to 72.3 in August from 73.4 in July. The reading was the lowest since May 2014, when the army seized power to end months of political unrest.
However, confidence should start to recover in the fourth quarter following the government’s new stimulus measures to help a struggling economy, the university said in a statement.
The government unveiled on Tuesday 136 billion baht (RM16 billion) of economic measures, including soft loans, aimed at lifting low-income earners’ purchasing power.
The stimulus could boost economic growth by 0.7-1.0 percentage point this year, Thanavath Phonvichai, an economics professor at the university, told a news conference.
“It won’t stimulate the whole economy but it’s a good one. Without it, the economy may grow less than 2.5 per cent this year,” he said.
The university maintains its growth forecast of 2.5-2.9 per cent for 2015.
The stimulus comes after Prime Minister Prayuth Chan-ocha reshuffled his cabinet, appointing a new finance minister and a new deputy premier to oversee the economy.
Southeast Asia’s second-largest economy has yet to regain momentum after more than a year of military rule as exports are sluggish while high household debt has crimped consumption. Falling commodity prices have also cut farmers’ incomes.
The one bright spot, tourism, has been dealt a blow from the August 17 Bangkok shrine bombing.
The Finance Minister said last week the blast could reduce foreign tourists numbers by 300. — Reuters
