FX.co ★ Thailand Business Sentiment Remains Subdued

In January 2026, Thailand's business confidence indicator experienced a decline, dropping to 49.1 from December's figure of 49.8. This decrease in sentiment was primarily attributed to rising production costs, which fell to 39.7 from 42.4, and challenges in employment, which decreased to 49.1 from 51.6. Meanwhile, there was a slight dip in optimism regarding investment (down to 51.4 from 51.8) and order books (decreasing to 50.5 from 51.5). However, improvements were noted in performance assessments, rising to 51.3 from 49.9, and production, increasing to 52.4 from 51.4. The manufacturing sector saw declines across various industries, notably in plastics and electronics, as order books suffered due to uncertainties stemming from U.S. policy. Non-manufacturing sectors also faced challenges ahead of a new government formation, ongoing price competition, and a low tourism season negatively impacting hotels and restaurants. Furthermore, the three-month forward-looking sentiment index fell to 52.3 from 54.4 in the prior month, reaching its lowest point since September.