Consumer confidence rose for a second straight month in August, driven by voters' approval of the new charter, higher confidence in political stability and fading concerns about drought.
The government's commitment to accelerate spending in investment and stimulating the economy in the second half also helped raise sentiment, according to the latest survey by the University of the Thai Chamber of Commerce (UTCC).
The consumer confidence index rose to 73.2 in August from 72.5 in July, which in turn was up from a 25-month low of 71.6 in June, said Thanavath Phonvichai, vice-president for research at the UTCC.
"Consumers are feeling more positive about economic and political stability, particularly after voters' endorsement of the charter," he said. "Other factors include the National Economic and Social Development Board (NESDB)'s report on economic recovery for the second quarter and the Monetary Policy Committee's ruling to maintain its policy rate at 1.5%."
The NESDB reported that by the middle of August Thailand's economic growth beat expectations in the second quarter, boosted by rising tourism and government spending, improving household consumption and a recovering farm sector.
GDP rose by 3.5% year-on-year in the second quarter, up from 3.2% in the first. Consequently, the economy in the first half grew by 3.4%, up from 2.8% growth in the year-earlier period.
The main engine of second-quarter growth was expansion of non-agricultural production, especially in service-related sectors. The manufacturing sector turned in positive growth after a contraction in the first quarter.
However, the government's planning unit is still maintaining its forecast for full-year GDP growth of 3.0-3.5%, as exports are likely to fare worse than forecast.
Falling exports, higher domestic oil prices and cost of living, relatively low farm product prices and periodic bombings in the South remain key areas of concerns, said Mr Thanavath.
The Commerce Ministry reported customs-cleared exports fell by 2.3% to US$122 billion.
Mr Thanavath said people are also increasingly concerned about employment, citing low recruitment of new employees and a cut in overtime payments. However, he insisted Thailand has yet to see signs of mass layoffs and the unemployment rate remains relatively low at 0.9% of the total workforce.