Mr. Nava Chantanasurakorn, Vice Chairman of the Federation of Thai Industries (FTI), along with Dr. Wirat Chatrong, FTI board member and Vice Chairman of Economic and Academic Affairs, jointly revealed the industrial confidence index for January 2026, which stood at 88.7, up from 88.2 in December 2025.
The increase in the index reflects positive signals from various factors. The industrial sector resumed normal production activities after the extended New Year holidays and accelerated output to meet orders during the Chinese New Year festival, especially in processed food, garment, and packaging industries. Additionally, the rise in tourist numbers during the New Year festival, supported by government tourism promotion measures such as opening direct flight routes and organizing promotional events across multiple areas, continued to help distribute income to regional communities and local operators.
Meanwhile, the approval of seven additional data center investment projects worth over 96 billion baht in the Eastern Economic Corridor (EEC) supports the growth of the high-tech industry and increases demand for electronic equipment. Furthermore, pre-election activities have stimulated spending from both government and private sectors, resulting in increased economic circulation, such as printing election campaign signs, ballots, and political party campaigns. The improving security cooperation along the Thailand-Cambodia border, following a ceasefire agreement, has allowed residents to return to their areas, facilitating the resumption of normal economic activities.
However, in January, some challenges require close monitoring. Public investment disbursement remains below target, with a spending rate of 21% as of 23 January 2026, below the 26% goal set for the end of January 2026, potentially delaying funds entering the economy. At the same time, the increase in social security contribution from 750 baht to 875 baht per month has raised labor costs for businesses. Additionally, delays in unemployment benefit payments have affected the incomes of over 208,404 unemployed individuals.
Moreover, the high levels of PM2.5 fine particulate pollution, mainly caused by open burning particularly in the central and northeastern regions, continue to impact tourism and public health. The end of government spending stimulus measures has slowed domestic purchasing power. Meanwhile, the continued strength of the baht puts pressure on exporters’ revenues and competitiveness, especially for food products, processed agricultural goods, and low-margin items.
Based on a survey of 1,300 operators covering 48 industry groups by the Federation of Thai Industries (FTI) in January 2026, concerns that have decreased include domestic economy (60.2%), government policy (39.2%), energy prices (27.1%), credit access (24.3%), and loan interest rates (16.5%). Conversely, concerns that have increased include the global economy (58.2%) and exchange rates (especially from exporters' perspectives) at 52.4%.
The three-month forward-looking index stood at 95.9, up slightly from 95.7 in December 2025, supported by key factors such as the high tourism season during the Songkran festival, which is expected to stimulate domestic consumption, particularly in food, beverages, and souvenirs. Additionally, the formation of a new government is anticipated to drive economic policies and accelerate budget disbursement, benefiting economic activities and overall confidence.
However, there remain risks to closely watch, especially concerns over geopolitical conflicts and trade wars, which could dampen global trade sentiment and increase supply chain risks in the near term.
Recommendations to the government
1. Propose that the government consider extending the Board of Investment (BOI) support fund program until the end of 2026 to help reduce costs and enhance competitiveness for operators.
2. Recommend stricter enforcement of laws related to managing PM2.5 pollution, particularly open burning, alongside strengthening cooperation with neighboring countries to address cross-border pollution issues concretely.
3. Urge the government to expedite budget allocation to promote AI technology knowledge and application among entrepreneurs, especially SMEs, to improve business efficiency and reduce costs in Thailand's industrial sector.
The FTI has compiled industrial confidence survey results and economic and industrial indicators from various agencies over the past three years into a dashboard, available on the FTI's Industry Data Space (iDS) website. This resource facilitates access to valuable business information for entrepreneurs and the general public.https://fti.or.th/ids
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