Thailand Private Investment Weakens Further in April

Private investment in Thailand tumbled by 5.0% month-on-month in April 2026, deepening from a 3.5% decline in the previous month. It marked the steepest decline since December 2023, driven primarily by private vehicle and machinery and equipment index. The downturn was mainly driven by weaker investment in private vehicles and machinery and equipment. However, several components of investment activity remained relatively resilient with imports of machinery and equipment and domestic sales of machinery and equipment also posted gains. In addition, private construction investment rose during the month, supported by continued activity in both residential and infrastructure-related projects.

Private investment in Thailand tumbled by 3.5% month-on-month in March 2026, reversing a 1.9% gain in the previous month. This marked the steepest decline since September 2025, driven primarily by weaker investment in machinery and equipment. The downturn reflected lower net imports of capital goods, particularly electrical equipment, even as domestic machinery sales increased amid stronger production of machinery and tools. This divergence suggests that while local manufacturing activity remained resilient, firms scaled back on imported capital inputs. Construction investment was broadly stable, with residential construction activity unchanged, while non-residential investment edged lower amid a slowdown in commercial building projects. On the other hand, vehicle investment strengthened, supported by higher registrations, especially passenger cars, as well as increased ship imports by transportation businesses.

Private investment in Thailand rose 1.9% month-on-month in February 2026, easing from a 2.7% increase in the previous month. This marked the weakest monthly growth since the decline in October 2025, largely driven by a drop in vehicle investment (87.4 vs 91.8), weighed down by lower vehicle registrations, particularly electric vehicles, following the expiration of the EV 3.0 scheme, as well as a fall in aircraft import values. In contrast, investment in machinery and equipment (137.9 vs 131.8) continued to expand, remaining the main driver of overall growth, supported by higher net imports of capital goods, especially computers, despite weaker domestic machinery sales. Construction investment also grew, led by a rise in non-residential projects, reflecting an increase in permitted construction areas, particularly for business and commercial buildings.