Thailand factory confidence rebounds after four months

July 09, 2026 (MLN): Thailand's industrial confidence increased for the first time in four months in June, supported by government measures to ease household living costs, encourage domestic spending, and lower energy expenses.

The industrial sentiment index rose to 88.2 in June from 84.7 in May, with improvements recorded across all key indicators, particularly operating costs, according to the Federation of Thai Industries (FTI). The survey covered 1,328 entrepreneurs from 48 industry groups.

The FTI attributed the improvement partly to lower global oil prices following easing tensions in the Middle East, which reduced energy and transport costs for manufacturers while easing concerns over disruptions to raw material supplies.

Despite the improvement in sentiment, manufacturing activity remained under pressure in several sectors, with lower capacity utilization reflecting weaker orders, particularly in the steel, textile, and apparel industries, according to APP.

Looking ahead, the industrial confidence index for the next three months climbed to 94.5 from 91.7, driven by expectations that the government's household solar program and planned energy reforms will support demand across related industries.

The FTI called for a clear national strategy with measurable targets to balance electricity pricing, industrial competitiveness, and Thailand's transition to a low-carbon economy. It also urged authorities to promote locally manufactured products and introduce incentives encouraging businesses to purchase goods produced under the "Made in Thailand" initiative.

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