Consumer confidence fell for a fifth straight month in May and hit an eight-month low as Thais fretted about the slower-than-expected economic recovery, low commodity prices, drought conditions and weak exports.
A survey by the University of the Thai Chamber of Commerce (UTCC) released Thursday said the consumer confidence index dropped to 72.6 points last month after reading 72.7 in April, 73.5 in March, 74.7 in February, 75.5 in January, 76.1 in December, 74.6 in November and 73.4 in October.
Thanavath Phonvichai, vice-president for research at the UTCC, said consumers felt the economy was recovering quite slowly and their income had stagnated because of low crop prices and the impact of the drought. Poor export prospects also weighed heavily.
The Commerce Ministry last month said exports fell back in April after two months of growth, hit by continued weak global demand and falling commodity and oil prices.
Shipments fell by 8% year-on-year to US$15.5 billion, with imports plunging 14.9% to $14.8 billion.
Thailand had a trade surplus of $721 million in April.
In March, Thailand's shipments rose 1.3% after February's 10.3% increase. Both increases were driven by gold and special hardware items for military exercises.
For the first four months, shipments shrank 1.24% from the same period last year to $69.4 billion, while imports totalled $60.5 billion, a fall of 12.7%. Thailand had a trade surplus of $8.91 billion for the period.
Poor performance led the Commerce Ministry to admit that its 5% export growth target would become difficult.
Shippers also recently warned that exports face a decline for a fourth straight year if signs of a global economic recovery fail to surface by this month.
Exporters blame the decline on gloom in big economies such as Japan, China and the EU.
Mr Thanavath said domestic consumer sentiment was expected to recover late in the third quarter on prospects that the global and Thai economies were likely to start recovering, while the government's investment in big-ticket infrastructure projects was expected to materialise.
In a separate survey also released Thursday, the UTCC said spending during the Euro 2016 football tournament is forecast to reach 76.5 billion baht, down 19.6% from the 2014 Fifa World Cup in Brazil.
The 15th European championship, held every four years, takes place in France from Friday evening until July 10.
Wachira Kuntaweethep, assistant director of the UTCC's Center for Economic and Business Forecasting, said 57.9 billion baht is expected to be spent on illegal gambling, up 3.7% from the World Cup two years ago.