BANGKOK: Thai consumer confidence dropped for a third straight month in April, hitting its lowest level in seven months due to concerns over U.S. tariffs and a slow domestic economic recovery, a survey showed on Thursday.
The consumer index of the University of the Thai Chamber of Commerce fell to 55.4 in April from 56.7 in the previous month, the university said in a statement.
“Confidence has steadily declined... due mainly to the trade war”, university president Thanavath Phonvichai told a press conference.
“Purchasing power remains stagnant, suggesting confidence is still in a downward trend,“ he said, adding consumers were hesitant to make purchases, especially on durable goods, homes, vehicles, and travel.
Thailand will face a 36% U.S. tariff if a reduction can't be negotiated before a moratorium expires in July. The U.S. has set a 10% tariff for most nations while the moratorium is in place.
Thailand has sent a trade proposal to Washington as part of its efforts to avoid the tariffs, Finance Minister Pichai Chunhavajira said on Wednesday.
Thanavath said if tariffs remained at 10% for most nations, then it could cut Thailand's economic growth by up to 1 percentage point this year.
Earlier this month, the finance ministry cut its 2025 forecast for growth in Southeast Asia's second-largest economy to 2.1% from 3% due to the impact of U.S. tariffs and a global slowdown.
The economy expanded 2.5% last year, lagging regional peers..
