Economy
Thailand’s Industrial Confidence Rises in July 2026
The Federation of Thai Industries reports a rise in industrial confidence to 90.0, though global economic pressures remain a concern.
According to the Federation of Thai Industries (FTI), Thailand's industrial confidence index improved to 90.0 in July 2026, up from 88.2 in the previous month. This growth is attributed to a recovery in the electric vehicle (EV) market and a rebound in export activities. Looking ahead, the FTI projects that the index could reach 96.1 within the next three months.
For residents and those monitoring the local economy, this uptick suggests a stabilizing manufacturing sector. However, the FTI highlighted several significant risks that could impact the economic landscape. These include ongoing geopolitical tensions in the Middle East, the potential implementation of a 12.5% U.S. tariff, and a rising non-performing loan (NPL) rate among small and medium-sized enterprises (SMEs), which has reached 9.5%.
To mitigate these pressures, the FTI has urged the government to prioritize support for biofuels, supply chain traceability, and the provision of soft loans to help businesses manage operational costs. While the current trend is positive, the actual impact of these external economic factors remains to be confirmed. The FTI continues to monitor how these global variables will influence domestic production and the broader Thai economy in the coming quarter.