Modern trade sentiment rose in the third quarter, boosted by the government's relaxation of lockdown measures.
The University of the Thai Chamber of Commerce (UTCC) yesterday reported the modern trade sentiment index stood at 47.9 points (out of 100) in the third quarter, up from 45.3 points in the second quarter and 46.3 points in the first quarter.
Thanavath Phonvichai, UTCC president, said most operators see the sentiment has bottomed out in the third quarter and expect the overall modern trade sentiment to improve from the fourth quarter.
"After the government relaxed the lockdown measures [in October], more consumers have returned to shopping," he said.
"We expect the sentiment will recover well in the fourth quarter after the government announced the reopening of the country early next month."
The government by the middle of this month declared waiving quarantine for fully vaccinated visitors from 10 low-risk countries, starting Nov 1, in a bid to revive the battered economy.
Prime Minister Prayut Chan-o-cha said last week Thailand will allow vaccinated visitors from 46 countries -- including Britain, the United States, China, Singapore, Germany, and Australia -- to forgo quarantine from early next month, up from 10 previously announced.
Mr Thanavath said he is bullish that the modern trade sentiment index will increase to more than 50 points in the first quarter next year mainly driven by the government's spending stimulus measures, especially the co-payment subsidy scheme Khon La Khrueng, and more vaccine coverage.
The cabinet in the middle of this month approved the distribution of a further 54.5 billion baht to help alleviate the hardship of those affected by the prolonged Covid-19 pandemic and to boost domestic consumption.
The new measures, which will be funded by the second 500-billion-baht emergency loan decree, will primarily support four schemes.
They comprise the third phase of the co-payment subsidy scheme 'Khon La Khrueng' (42 billion baht); cash handouts to low-income earners who hold state welfare cards (8.12 billion baht) and vulnerable people who need special assistance such as the elderly, the disabled, bed-ridden patients and those without smartphones (1.38 billion baht); and the 'Ying Chai Ying Dai' (the more you spend, the more you get) scheme worth 3 billion baht.
Retail operators have proposed the government help reduce their burden by making expenses incurring from Covid-19 prevention tax-deductible, come up with more effective flood management, and prudent plans to deal with a new Covid-19 outbreak if it reoccurs after the country's reopening.