Private consumption in Thailand declined by 0.8% month-on-month in March 2026, moderating from a 1.8% contraction in February. Nonetheless, this was the second consecutive monthly drop, primarily driven by weaker spending on services, especially at hotels and restaurants, amid subdued tourism activity. Consumption of semi-durable goods also fell, pressured by lower imports of textiles and apparel alongside softer retail sales.
By contrast, spending on non-durable goods increased, supported by higher purchases of fuel and consumer goods as households reacted to concerns about rising prices. Expenditure on durable goods also rose, bolstered by robust passenger car sales.
At the same time, consumer confidence deteriorated, reflecting growing worries about spillover effects from geopolitical tensions in the Middle East, notably the risk of higher energy prices, which could further push up production and transportation costs.
