In July, a decrease in consumer spending was observed among Thai shoppers, with the spending-per-bill index falling by 8.1 points to 47.0 from the previous month. The spending-per-bill component saw the greatest decrease among the main measures of the government’s Retail Sentiment Index.
While the frequency of shopping only declined marginally (0.4 points), indicating that consumers continued to visit stores almost as regularly, the marked decrease in the spending-per-bill index illustrates a reduction in the quantity of items purchased. Households are limiting their spending to essential goods, removing less necessary items from their lists.
Shift in Purchasing Habits
There is also a noticeable shift towards less expensive brands or store-brand products, with discretionary and lifestyle purchases being avoided. This behavior indicates a strain on finances rather than a mere change in shopping locations. Despite the ongoing need for everyday goods, tighter budgets are resulting in both reduced quantities and lower value purchases.
In July 2026, Thailand’s Consumer Price Index was reported to be 102.10, marking a 1.95% increase in headline inflation year-on-year from 100.15 the previous year.
Impact of Government Stimulus Program
In the same month, the government continued its Thais Help Thais Plus 60/40 stimulus program, with the total expenditure remaining similar to June’s figure, at roughly 43 billion baht, or about US$1.29 billion. Approximately 25.78-26 million people availed of the program, with average spending of around 1,600-1,700 baht per person.
However, this cash injection was insufficient to counter the underlying weakness in household income. In June, the program’s inaugural month, consumers increased their spending to utilize unused entitlements. By July, users were more familiar with the program and began to distribute their spending more evenly.
Following the use of the support for basic necessities, households had limited personal spending power for other product categories, thereby restricting the program’s wider economic impact.
Adding to the pressure in July were heavy rains and floods in several regions, which resulted in decreased visitor numbers to medium-sized and large shopping centers.
Questions & Answers
What was the key reason for the decrease in the Thai spending-per-bill index in July?
The primary reason was that households were limiting their purchases to essential goods and removing less necessary items from their shopping lists.
How did the government’s stimulus program impact consumer spending in Thailand?
The Thais Help Thais Plus 60/40 stimulus program helped sustain spending levels to some extent, but it was not enough to fully counter the underlying weakness in household income.
What additional factors affected consumer spending and retail visits in July?
Heavy rains and floods in several regions decreased the number of visitors to medium-sized and large shopping centers, thereby impacting consumer spending.
