Thailand’s consumer confidence declined to an eight-month low in April, reflecting growing concerns over rising global energy prices amid ongoing Middle East tensions, a survey revealed on Tuesday. The University of the Thai Chamber of Commerce conducted the survey of 2,241 respondents, finding that the consumer confidence index dropped to 50.6 last month from 51.8 in March.

The university indicated that consumers are likely to maintain cautious spending habits throughout the first half of 2026 as uncertainties surrounding regional geopolitical developments persist. Additionally, the effectiveness of government measures to mitigate economic impacts remains a key factor for market sentiment.

Thanavath Phonvichai, president of the university, commented that economic uncertainty has notably dampened consumer activity, especially affecting significant purchases such as vehicles and real estate. The slowdown is also impacting the tourism industry, which plays an important role in Thailand’s economy.

Despite these challenges, Thanavath highlighted that the Bank of Thailand’s decision to hold its policy interest rate steady has helped stabilize consumer sentiment. The central bank’s approach is aimed at controlling inflation while minimizing additional financial pressure on businesses.

Government initiatives, including relief efforts targeted at vulnerable sectors such as transport, fisheries, and agriculture, are expected to help prevent excessive increases in consumer prices. These measures are anticipated to improve both consumer and business confidence starting in May, according to Thanavath.