Thai consumer confidence dropped for a fourth consecutive month in May, falling to its lowest level in 27 months, due to concerns over US tariffs and a sluggish economy, a survey showed on Thursday.
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The index compiled by the University of the Thai Chamber of Commerce fell to 54.2 in May from 55.4 in the previous month, the university said in a statement.
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“The current situation clearly indicates that from the consumers’ perspective, the economy is not good, with no signs of recovering,” university president Thanavath Phonvichai told a press conference.
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Thailand will face a 36% US tariff if it fails to negotiate a reduction before a moratorium expires on July 9. A tariff of 10% has been set for most countries while the moratorium is in place.
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Southeast Asia’s second largest economy has yet to begin negotiations with the United States. Officials said this week that talks would begin soon but were vague about details and dates.
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“At this time, it is unclear whether Thailand will be able to negotiate successfully in time,” Mr Thanavath said.
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The estimated damage to the economy from lost exports and tourism revenues will be around 150 billion to 200 billion baht, he added.
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Last month, the National Economic and Social Development Council slashed its growth forecast range by a full percentage point to between 1.3% and 2.3% this year, warning that the impact of the tariffs would last for two years.