The central bank of Thailand has reported that retailer confidence at present and over the next three months is on a downward trajectory, mainly due to the rising living expenses.
The Bank of Thailand (BOT), explained that the projection is also influenced by the weakening consumer purchasing power, as various government stimulus campaigns expired. These factors inevitably suppressed the recovery of the retailing sector.
The BOT further indicated that people are still shying away from spending, despite the improving COVID-19 situation, leading to more outdoor activities. This is partly because of the rising prices of consumer products and transportation costs, stemming from the prolonged war in Ukraine disrupting the global supply chain of various goods and more importantly fuel.
The central bank said that retailer confidence in the northern and northeastern regions contracted following price hikes of several items. However, vendors’ confidence in Bangkok and its vicinity improved slightly, as sellers in the areas stockpiled their offerings prior to the hikes, and major retailers organized sales campaigns to stimulate spending.
The confidence of supermarkets, hypermarkets, and restaurants rose higher than that of the previous month, in contrast to the spending per bill rate of consumers.
Prices of goods remain the major factor affecting the recovery of consumers’ spending power, said the central bank.