Thai Industrial Confidence Rises for First Time in 7 Months
BANGKOK, Oct 15 (TNA) - Thai industrial confidence rose for the first time in seven months in September, hitting 87.8, up from 86.4 in August 2025, the Federation of Thai Industries (FTI) announced on Wednesday.
The improved sentiment is largely due to the swift formation of the new government, which has boosted private sector confidence and is expected to drive economic stimulus and investment measures.
The rise was underpinned by surging Foreign Direct Investment (FDI), which climbed 125% year-on-year (YoY) from January to August 2025, heavily concentrated in the Eastern Economic Corridor (EEC).
Other factors include better SME access to credit and continued growth in agricultural and electronics exports, especially to Malaysia, Vietnam, and Taiwan, alongside rising domestic EV sales.
However, persistent challenges include the stronger Thai baht, which is eroding exporter competitiveness, widespread agricultural damage from monsoons, and significant losses from prolonged border closures, notably with Cambodia and Myanmar.
The 3-month forward-looking ICI rose to 91.8, projecting sustained growth based on anticipated government stimulus (like the "Kon La Krueng" co-payment scheme) and the economic activity surrounding the December SEA Games.
The FTI urged the government to adopt measures to safeguard industrial recovery, including mandating state agencies to purchase "Made in Thailand" products, reducing energy costs (by reviewing tariffs and reducing electricity guarantee deposits), and promoting FX hedging tools to help SMEs manage currency risk.
