Thailand industrial confidence index declines in August

The Federation of Thai Industries (FTI) reported that the industrial confidence index for August 2026 fell to 89.70, down from 90.0 in July. Pimjai Leesissaranukun, President of the FTI, cited heavy rainfall and high energy and petrochemical costs as primary factors increasing production expenses and risking logistics and agricultural raw material supplies.

The automotive sector has faced significant challenges, with vehicle sales dropping 17.38% year-on-year during the first seven months of 2026 due to limited purchasing power and credit access, particularly for pickup trucks. Additionally, SMEs continue to struggle with high production costs, limited access to capital, and competition from imported goods.

Despite these pressures, exports grew by 18.2% year-on-year, driven by electronics such as computers, printed circuit boards (PCB), and hard disk drives (HDD), fueled by AI-related investments. The food industry also saw expansion in processed foods and pet food. Looking ahead, the three-month confidence forecast rose to 97.0, supported by expected year-end spending and government economic stimulus measures.