Thai consumer sentiment continued its downward spiral in May, marking the fourth consecutive month of decline. The confidence index has plunged to its lowest point in over two years, primarily driven by apprehensions surrounding U.S. tariffs and a slowdown in the economy, according to a survey released on Thursday.
The University of the Thai Chamber of Commerce reported a dip in its consumer confidence index, registering 54.2 in May, down from 55.4 in April, as per a statement issued by the university.
Thailand faces the prospect of a steep 36% tariff imposed by the United States unless a negotiation breakthrough is achieved before the existing moratorium lapses in July. At present, a 10% tariff is imposed on most countries under the moratorium.
The anticipated economic fallout, attributed to dampened export and tourism revenues, is estimated to range between 150 billion and 200 billion baht ($4.6 billion-$6.2 billion), he stated.
Thailand’s state planning agency previously adjusted its growth forecast, reducing the range by one percentage point to a span of 1.3% to 2.3% for this year. The agency also warned that the tariffs could potentially cast a shadow over the economy for the next two years.
