Thai Consumer Confidence Is Falling - Will Thailand Stock Crashed ?

Bangkok, April 2025 – Consumer confidence in Thailand fell to a five-month low in March, as rising living costs and growing concerns over trade tariffs—particularly with the United States—put pressure on households across the country.

According to the latest report from the University of the Thai Chamber of Commerce (UTCC), the Consumer Confidence Index (CCI) dropped to 56.7 in March, down from 57.8 in February. This marks the second consecutive monthly decline, signaling growing caution among Thai consumers.

Temporary Relief: 90-Day Tariff Pause

In a bit of good news, the U.S. has granted Thailand a 90-day pause on the proposed tariffs. This window gives Thai authorities time to renegotiate trade terms, with officials reportedly offering to increase imports from the U.S. and lower certain domestic tariffs to sweeten the deal.

Still, the pause is just that—a pause. If no agreement is reached, the tariffs could go into full effect by mid-year, adding more pressure to Thailand’s export-driven economy.

What’s Driving the Dip in Confidence?

Several factors are weighing heavily on public sentiment:

Rising Cost of Living

From groceries to fuel, Thai consumers are facing noticeably higher prices. Inflationary pressure is squeezing disposable income, making households more hesitant to spend.   
           
Sluggish Economic Growth

Thailand’s economy expanded by only 2.5% in 2024, falling short of expectations and trailing behind many neighboring countries. The slow recovery has led to reduced optimism about job prospects and long-term financial security.

Escalating Trade Tensions

A major concern right now is a proposed 36% tariff by the United States on Thai exports. While this has not yet been implemented, the uncertainty is creating anxiety among businesses and consumers alike. Economists warn that the tariff could potentially trim Thailand’s GDP growth by up to 1%, which would be a serious blow.