Thai consumer confidence reaches six-month high in August

BANGKOK: Thailand’s consumer confidence has strengthened for a third consecutive month in August, reaching its highest level in six months as purchasing power and economic activity showed early signs of improvement, according to the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, president of UTCC and chief adviser of its Centre for Economic and Business Forecasting, reported that the Consumer Confidence Index rose to 53.2 in August 2026, the highest reading since March.

The improvement reflected an easing of public concern over war and the global economy, helping sentiment recover after several months of uncertainty.

Other confidence indicators also increased for a third consecutive month.

Confidence in Thailand’s overall economy stood at 46.6, confidence in employment opportunities at 50.9 and confidence in future income at 62.1.

One of the main factors supporting sentiment was the easing of the conflict involving the United States, Israel and Iran, which helped prevent sharp increases in global and domestic oil prices.

The government’s Thai Helps Thai Plus co-payment scheme also continued to support spending for a third month, while prices of major agricultural products remained above their levels a year earlier, helping strengthen household purchasing power and improve the economic mood.

Tourism also showed a clearer recovery in July and August after slowing in June, while exports continued to expand by nearly 20%.

Private investment remained active, particularly foreign investment in technology and general industries.

Public investment during the first half of the year totalled about 500 billion baht, while more than 140 billion baht circulated through the economy under Thai Helps Thai Plus over the previous three months.

These factors helped sustain purchasing power and provide momentum for economic activity.

Despite the improvement, Phonvichai noted that most confidence indicators remained relatively low, suggesting that consumers did not yet regard Thailand’s economic recovery as firmly established.

Nevertheless, sentiment was moving in a more positive direction.

Consumers had become more optimistic about buying cars and homes, travelling and taking holidays, while small and medium enterprises were also seeing better business prospects.

Political developments and oil prices remained among the main risks requiring close attention. Confidence in the political situation fell in August in assessments of both current and future conditions, amid concerns about a possible realignment of the governing coalition, the dissolution of the House and legal cases that could affect the main governing party and its coalition partners.

Such developments could have consequences for political stability and the continuity of government economic policies.

Global oil prices had moved closer to US$100 a barrel, with the latest price at about US$95 amid renewed tensions in the Middle East.

Domestic fuel prices had also reached around 40 baht per litre.

If tensions persist, oil prices could remain elevated or increase further, putting additional pressure on business costs, household purchasing power and the Oil Fuel Fund.

“September and October will be a crucial turning point for the economy, determining whether the recovery continues or loses momentum again,” Phonvichai said.

“The key factors to watch are the direction of the war, oil prices, negotiations on the Agreement on Reciprocal Trade with the United States and Thailand’s domestic political situation.” — The Nation/ANN