Flood impact dents consumer confidence

Thailand's consumer confidence index fell in September for the first time in four months, according to a survey released by the University of the Thai Chamber of Commerce. This decline can be attributed to flooding, a sluggish economic recovery, and high living costs, the university reported on Thursday. The index dropped from 53.2 in August to 52.1 in September.

The city of Bangkok was recently declared a disaster-affected zone after receiving over 300 millimeters of rain in just three days, a significant amount compared to the typical September rainfall. The capital region is still in the process of recovery from the floods, while many other provinces continue to experience substantial inundation.

Economic damage from the floods is estimated to be between 22 billion and 30 billion baht, and could remain within this range if conditions begin to improve next week, Thanavath Phonvichai, the university's president, stated during a briefing on Thursday. Global tensions also negatively impacted economic confidence, the university noted.

The university predicts that consumer sentiment may improve later in the year if flood risks recede, oil prices decrease, tourism increases, and government stimulus measures gain traction. However, economic growth is expected to remain modest, with a forecast of 2.2% to 2.5% growth this year. This growth would be virtually unchanged from the 2.4% growth witnessed last year and significantly below regional averages.