Thailand Business Mood Improves in June

Thailand’s Business Sentiment Index rose to 46.1 in June 2026 from 42.5 in May, marking its least pessimistic reading in three months. The improvement was driven by the easing of the Middle East conflict, lower energy prices, and the government's "Thais Help Thais Plus" scheme, which temporarily boosted domestic purchasing power. Sentiment strengthened across production (51.9 vs 44.0 in May), business performance (49.3 vs 43.7), and total order books (48.1 vs 43.6). Manufacturing confidence improved across all industries, led by the automotive sector, while the chemical industry benefited from lower energy costs and alternative raw material sourcing. Non-manufacturing sentiment also strengthened, mainly in retail and wholesale trade. Meanwhile, the three-month expected Business Sentiment Index increased to 48.0 from 46.9. Cost pressures eased markedly as lower energy prices reduced production costs, while 12-month inflation expectations were unchanged at 2.7%.

Thailand’s Business Sentiment Index fell to 42.5 in May 2026 from 43.5 in the previous month. This marked the lowest level since August 2021, weighed down by the prolonged Middle East conflict. Sentiment continued to deteriorate for production (44 vs 48.2 in April), performance (43.7 vs 47), overall order books (43.6 vs 44.2), and export conditions (45 vs 46.4). By sector, manufacturing sentiment softened across several industries, led by the automotive sector, where production and performance sub-indices fell sharply amid intensifying competition in vehicle sales. The food and beverage industry also faced mounting pressures, as packaging costs remained 30% to 50% higher than pre-conflict levels and elevated freight rates continued to delay orders from Middle Eastern markets. Meanwhile, sentiment in the non-manufacturing sector remained broadly unchanged from the previous month. The three-month expected Business Sentiment Index rose to 46.9 in May from 40.9 in April.

Thailand Business Sentiment Index fell to 43.5 in April 2026 from 47.7 in the previous month, as Middle East war disruptions weighed on activity. This marked the lowest level since September 2021, led by weakness in production costs (21.6 vs 34.2 in March) and performance (47.0 vs 51.0). Sentiment weakened across overall order books (44.2 vs 47.9), production (48.2 vs 51.3), and investment (49.6 vs 51.8), while export conditions were less negative (46.4 vs 45.5). The manufacturing index weakened, led by the petrochemical and plastics industries, which were particularly hit due to tighter supply of upstream feedstocks. The hotel and restaurant sector also deteriorated, with sentiment falling to its lowest level since the COVID-19 pandemic, driven by reduced long-haul tourist arrivals amid fewer flights, higher airfares, and heightened safety concerns. The 3-month expected BSI dropped to 40.9, reflecting concerns over a potentially prolonged situation.