What To Know
- According to Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPSO) and spokesperson for the Ministry of Commerce, the downturn is rooted in escalating concerns over several destabilizing issues.
- The survey of 5,652 participants nationwide also pointed to a marked fall in international tourism and a steep drop in agricultural prices, both of which are hitting rural communities hard.
Bangkok Business News: Confidence Slips Sharply Across Regions and Sectors
Thailand’s Consumer Confidence Index (CCI) experienced a significant drop in June 2025, falling to 46.7 from 48.9 in May, reflecting growing public anxiety over multiple economic pressures both at home and abroad. This Bangkok Business News report highlights the critical factors dragging consumer sentiment down and what the government is doing in response.
Thai Consumer Confidence Falls
Image Credit: AI-Generated
According to Poonpong Naiyanapakorn, Director of the Trade Policy and Strategy Office (TPSO) and spokesperson for the Ministry of Commerce, the downturn is rooted in escalating concerns over several destabilizing issues. Among the most cited were the unpredictable tariff policies of the United States—especially under the looming influence of Donald Trump’s political resurgence—the intensifying Middle East conflict, and rising regional tensions between Thailand and Cambodia that threaten to disrupt border trade and internal political stability.
Debt Burden and Tourism Decline Add Pressure
Compounding the problem is Thailand’s ongoing battle with high household and business debt, now seen as a major economic drag. The survey of 5,652 participants nationwide also pointed to a marked fall in international tourism and a steep drop in agricultural prices, both of which are hitting rural communities hard.
The oversupply of key crops has led to plunging prices, directly impacting farmers’ earnings. Meanwhile, businesses across the tourism sector are struggling to recover as international arrivals fail to return to pre-pandemic levels. These combined forces have put downward pressure on consumer optimism, despite government stimulus efforts.
Confidence Levels Vary by Region and Occupation
Regionally, the Northeast stood out as the only area showing a CCI above the confidence benchmark, registering 50.4. The South followed with 47.1, the North with 45.5, the Central region at 45.1, and Bangkok and its surrounding areas trailing at 43.6.
In terms of professions, only government employees reported confidence above the 50-point threshold, scoring 50.2. The rest of the occupational groups lagged behind: students (48.6), entrepreneurs (47.6), farmers (46.7), private employees (45.9), the unemployed or retired (44.9), and self-employed individuals (44.4). Notably, economic experts reported the lowest confidence level of all, with a grim 31.6.
Government Moves to Boost Morale and Markets
In response to these findings, the Ministry of Commerce is ramping up its initiatives. Poonpong stressed the government’s commitment to mitigating living costs and bolstering economic activity through a multi-pronged strategy. This includes fast-tracking domestic fruit distribution to combat price collapses, regulating low-grade imports to stabilize the agricultural market, and pushing export opportunities via international trade exhibitions.
Simultaneously, SMEs are being given renewed support to help them adapt and compete globally. These actions are being backed by broader stimulus measures focused on infrastructure investment, tourism revitalization, and community-based economic projects designed to trigger short-term momentum and longer-term recovery.
Despite the bleak snapshot presented by June’s figures, officials remain cautiously optimistic that these measures will start to yield positive results. “The government will continue to take decisive steps to restore economic confidence,” Poonpong noted.
If the economic interventions prove effective in easing household financial pressures, curbing inflation, and attracting international trade and investment, there is hope that Thailand’s consumer sentiment will soon rebound. However, with external risks such as trade wars and geopolitical instability beyond the country’s control, sustained recovery will require both agility and resilience from policymakers and businesses alike.
For the latest on the Thai Economy, keep on logging to Bangkok Business News.