Thailand Business Confidence at 8-Month High

Thailand’s Business Sentiment Index rose to 49.8 in August 2026, improving from 46.7 in the previous month but remaining below the 50 threshold for the ninth consecutive month. This marked the highest reading since December 2025, as confidence strengthened across production (54.5 vs 48.6), total order books (51.2 vs 47.5), and performance (53 vs 50). By sector, the nonmanufacturing index improved, led by hotels and restaurants, as foreign tourist arrivals from China and Europe gradually increased. Trade sentiment also strengthened, particularly in FMCG, although weak domestic purchasing power kept spending focused on essentials. Manufacturing confidence rose, led by processed rubber as firms stocked up on raw materials amid El Niño concerns, while plastic packaging and food and beverage also improved. Meanwhile, the three-month expected Business Sentiment Index slipped slightly to 50.5 from 50.7.

Thailand’s Business Sentiment Index rose to 46.7 in July 2026 from 46.1 in June, the highest reading in four months.The improvement was driven mainly by stronger sentiment in the non-manufacturing sector, supported by lower fuel costs and increased flight services, while gains were partly offset by weaker confidence in manufacturing amid concerns over US import tariffs. Sentiment improved for business performance (50.0 vs 49.3) and investment (51.2 vs 50.7), while expectations for production (48.6 vs 51.9), employment (48.9 vs 50.2), and total order books (47.5 vs 48.1) turned less optimistic. Meanwhile, manufacturing confidence weakened, led by lower order books in the home electrical appliance industry. High production costs remained the top business constraint for the fifth straight month, while inflation expectations for the next 12 months eased slightly to 2.6%. Moreover, the three-month expected Business Sentiment Index rose to 50.7 from 48.0.

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%.