Thai Industrial Confidence Rises in July, Fueled by EVs and State Stimulus
Thailand's industrial confidence rose for a second consecutive month in July. Electric vehicle sales and government stimulus measures supported the increase, the Federation of Thai Industries (FTI) reported.
Sentiment Index Details
The Federation of Thai Industries (FTI) reported that Thailand’s industrial sentiment index reached 90.0 in July. This marks an increase from 88.2 in June, extending a two-month upward trend. The FTI attributed this improvement to robust electric vehicle (EV) sales and government support programmes. Manufacturers also showed greater optimism for the coming three months.
The FTI's three-month outlook improved to 96.1, anticipating lower power costs and increased activity from Thailand hosting IMF-World Bank meetings in October.
Key Drivers and Government Support
Confidence received a boost from several factors, including stronger government spending and higher exports of non-durable goods. In June, the government launched a 176-billion-baht (US$5.3 billion) consumer subsidy scheme. This initiative aims to alleviate living costs, forming part of a broader 400-billion-baht borrowing plan.
The larger plan addresses the financial impact of higher oil prices on consumers and businesses. These measures collectively supported the positive sentiment among industrial operators.
Persistent Headwinds
Despite the overall improvement, the FTI identified several ongoing challenges. US tariffs continue to affect Thai exports. Weaker tourism arrivals also present a constraint on economic activity. Furthermore, small businesses face rising levels of non-performing loans, indicating financial strain.
Manufacturers also highlighted Middle East tensions and reduced exports to that region as risks impacting the sector's outlook. These factors suggest a complex operating environment for Thai industries.
Thailand's economy grew by 1.9% in the second quarter of this year. The state-planning agency subsequently revised its 2026 economic outlook, now forecasting 2.0% to 2.5% growth, up from an earlier 1.5% to 2.5% range. This upward revision reflects improved conditions. The government is also pursuing a US$700 million EV plan.
This initiative aims to replace up to 80,000 vehicles as part of Thailand's energy transition efforts, driving future demand in the automotive sector.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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