The Thai Industries Sentiment Index (TISI) climbed to 89.1 points in November, up from 87.3, though entrepreneurs remain cautious amid a strong baht, severe flooding in the South and escalating border tensions with Cambodia, says the Federation of Thai Industries (FTI).
FTI chairman Kriengkrai Thiennukul credited the rise to government stimulus measures, particularly the “Khon La Khrueng Plus” co-payment scheme, along with the tourism high season in the final quarter.
“We have entered the high season for tourism, which boosted demand for products such as food and beverages during the Christmas and New Year festivals,” he said, noting entrepreneurs have accelerated production to meet rising orders.
Stimulus programmes have bolstered consumer confidence, increased purchasing power and eased living costs, driving consumption of everyday goods.
Trade negotiations also provided support, with government-to-government rice deals securing 500,000 tonnes for China and 100,000 tonnes for Singapore, helping farmers earn more income.
Meanwhile, accelerated budget spending for fiscal 2026, which began on Oct 1, further contributed to the index’s rise.
The survey, conducted among 1,356 entrepreneurs across 47 industry clubs, revealed declining concerns about the domestic economy (61%), global economy (56%) and government policies (42%).
However, foreign exchange volatility remains a pressing issue, with exporters disadvantaged by the baht’s appreciation.
The Bank of Thailand recently pledged tighter oversight of dollar sales linked to gold businesses to curb the currency’s surge.
Flooding in the Deep South, especially Songkhla’s Hat Yai district, in late November added to industry woes, damaging factories and households. Losses were estimated at 20-30 billion baht, with potential ripple effects reaching up to 90 billion baht next year, Mr Kriengkrai warned.
The FTI also voiced concern over rising tensions along the Thai-Cambodian border, which have disrupted trade and tourism and displaced more than 500,000 people.
“We support the government and military, and can confirm that no strategic materials such as fuel, construction supplies or essential goods are being exported to Cambodia,” he said.
