BANGKOK (Reuters) - Thai consumer confidence dropped for a seventh consecutive month in September to its lowest level in 17 months, due mainly to concerns about slow economic growth and floods in parts of the country, a survey showed on Thursday.

The consumer index of the University of the Thai Chamber of Commerce fell to 55.3 in September from 56.5 in the previous month, the university said in a statement.

Confidence was hurt by flooding and also high living costs, despite government handouts for vulnerable groups, the university said.

"The floods have a psychological impact, overshadowing the positive sentiment of the handout scheme," university president Thanavath Phonvichai told a press conference.

The government last month launched phase one of its flagship $14 billion stimulus handout scheme, which will eventually see an estimated 45 million people receive 10,000 baht ($298) each to spend within six months, aimed at sparking economic activity.

The initial phase will 14.5 million welfare card holders and disabled people receive their handouts in cash.

The scheme, which was scheduled for rollout in the last quarter of this year, is the cornerstone of the government's plans to kickstart Southeast Asia's second-largest economy, which expand 2.3% in the second quarter of 2024.

The central bank predicts 2.6% growth this year, after last year's 1.9% expansion that trailed regional peers.

($1 = 33.5300 baht)