Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce (UTCC), said the consumer confidence index increased to 56 in October, up from 55.3 in the previous month.
An index below 100 points signifies weak confidence, related to the slow rate of economic recovery, higher living costs, elevated interest rates, and geopolitical conflicts affecting consumer purchasing power and their confidence in terms of spending.
The country’s flooding eased, while cash handouts disbursed by the government allowed consumers to spend more, said Mr Thanavath.
However, consumers still felt the economic recovery was slow and the cost of living was high, he said.
The UTCC suggested consumer sentiment could rise if the government implements stimulus measures in the final month of the year.
A separate survey of chamber members from across the country edged down to 48.9 in October from 49.4 in September, which reflects a lack of consumer confidence in the overall economy including consumption, trade, investment and tourism.
The B10,000 cash handout to vulnerable groups may have a short-term stimulus effect on the retail sector, but local shops had not yet seen a significant increase in purchases as some people might have chosen to spend the money on non-essential items, said Somchai Pornrattanacharoen, honorary advisor to the Thai Wholesale and Retail Trade Association.
“The decreasing index reflects consumers’ declining confidence in the recovery of the Thai economy despite the government’s stimulus policies,” said Mr Thanavath.
The UTCC urged the government to restore consumer confidence through more economic measures and promote tourism at the end of the year, skills development for workers, financial support for small and medium-sized enterprises and stringent prevention and control of the influx of cheap and substandard goods from China, along with maintaining the stability of the baht.