Thai retailers are ringing alarm bells after a key confidence index plunged to its lowest level in over three-and-a-half years.
The Thai Retailers Association (TRA) revealed today that its Retail Sentiment Index (RSI) for June 2025 has hit a “new all-time low in 42 months,” signalling a deeply worrying trend in domestic purchasing power and nationwide consumer spending.
Businesses and investors are reportedly holding back, awaiting clear and concrete policy direction from the government.
The retail sector has faced immense pressure in the first half of the year. Domestic political uncertainty, persistent sluggish consumption, and a slowdown in investment across all business sizes have taken their toll.
External factors aren’t helping either.
The recovery of international tourism, particularly from the crucial Chinese market, remains incomplete.
Added to this are unpredictable US import tariffs and ongoing conflicts in the Middle East, along with the situation on the Thai-Cambodian border, all directly impacting consumer confidence and the wider economy.
Spending Slump: A Critical Warning
The sharp drop in the June RSI directly reflects a significant decline in both spending per receipt and shopping frequency across all regions of Thailand.
The TRA anticipates this downward trend will continue into the third quarter of the year unless tangible and timely economic stimulus measures are effectively rolled out.
While the formation of a new cabinet offers a glimmer of hope, many investors and entrepreneurs are opting to delay new ventures.
They are eager for clearer, proactive economic policies that can genuinely revitalise the long-stagnant economy.