UOB Thailand reported the ASEAN Consumer Sentiment Study 2024, revealing that 42% of Thai consumers are spending more on necessities, while the younger generation places more importance on spending on experiences and is more interested in investing. Mr. Yuthachai Teyarachkul, Managing Director, Consumer Banking, UOB Thailand, said that this year's study results underscore the need for Thai consumers to prepare financially to ensure good financial health amid economic pressures, including inflation, higher household expenses and reduced savings. The ACSS study results indicate that rising inflation remains a major concern for consumers in Thailand, coupled with a 15% drop in economic confidence compared to the previous year, the biggest drop in ASEAN. Consumer confidence in the economy has declined across ASEAN, with an average confidence of 54%, but Thailand's is at 36% compared to the previous year. With 64% of respondents citing increased household expenses, 60% and 58% citing reduced savings as a secon dary concern, along with concerns about debt burden (53%), most are cutting back on non-essential spending, seeking out secondary income and looking for deals and discounts on purchases. Despite economic uncertainty, Thai consumers are prioritising shopping for experiences over luxuries such as travel, fine dining, concerts, events and festivals. International travel remains strong, with respondents largely favoring ASEAN destinations such as Singapore, Vietnam and Malaysia. Millennials are also seen balancing spending with savings and investments, with most stating that they should have at least three months of emergency funds, higher than the regional average. Millennials place more importance on preserving wealth through savings and investments than their elders. Gen Z's deposit accounts have increased by 52%, and the number of Gen Z investors has more than doubled, increasing by 129%, while Gen Y investors have increased by 23%. Millennials are investing directly abroad by 10%, and investing abroad throu gh locally registered funds by 14%. Source: Thai News Agency
