Bangkok: The industrial confidence index in Thailand has reached its highest level in four months, driven by the "Thailand Helps Thailand Plus" campaign and a reduction in energy prices.
According to Thai News Agency, the Federation of Thai Industries (FTI) reported an increase in the Industrial Sentiment Index for June 2026, which rose to 88.2 from 84.7 in May 2026. This improvement is attributed to the "Thai Helps Thai Plus" measures that aim to ease living costs and bolster domestic consumption by injecting over 43.2 billion baht into the economy.
The report also highlights that mid-year promotional activities, such as the Amazing Thailand Grand Sale 2026 project, have stimulated sales across various sectors including consumer goods, food, beverages, and lifestyle products. This initiative has also encouraged spending among tourists. The temporary ceasefire agreement between the United States and Iran played a role in easing tensions in the Strait of Hormuz, leading to a decrease in global oil and domestic diesel prices. This reduction has helped lower energy and transportation costs for industries and mitigated the risk of raw material shortages in sectors like petrochemicals and fertilizers.
Additionally, the Thailand FastPass project has fast-tracked investment in 25 projects worth 223 billion baht, with expectations to exceed 700 billion baht in total investments. This has boosted investment confidence and spurred demand in related supply chains. On the international trade front, the exports of technology products have shown positive growth, expanding by 37.6 percent in the first five months of 2026 due to increasing global demand.
The Monetary Policy Committee's decision to maintain the policy interest rate at 1.0 percent per year has helped alleviate financing cost pressures and supports the recovery of the still fragile economy. However, certain risks remain, including the expansion of the controlled product list, which might restrict businesses from passing costs to consumers, particularly in the food sector. Trade barriers from countries like Malaysia, Mexico, and Vietnam continue to affect Thai exports, and the manufacturing sector is experiencing a slowdown due to reduced orders in industries such as steel, textiles, and garments.
The automotive industry, particularly the pickup truck market, is under pressure from weak purchasing power and stricter lending standards, resulting in a 5.13% year-on-year drop in sales. Overseas demand has also decreased by 12.31% year-on-year from January to May 2026, impacting the automotive parts supply chain. Entrepreneurs are less concerned about global economic growth, energy prices, domestic economic conditions, and credit access.
The forecast for the industrial confidence index over the next three months stands at 94.5, up from 91.8 in May 2026. Positive factors include government solar power initiatives and a 200 billion baht energy restructuring plan, expected to boost demand in the clean energy sector. However, risks such as potential US tariff measures under Section 301 and possible interest rate hikes in major economies could impact trade, investment, and global economic recovery.
The Federation of Thai Industries has proposed several initiatives to the government, including planning for a balanced electricity pricing structure, developing a tracking system for high-risk imported goods, and promoting the consumption of Thai products to enhance domestic production competitiveness.