FX.co ★ Thailand Business Sentiment Remains Subdued

Thailand’s business confidence increased to 48.6 in June 2025, up from a previous eight-month low of 46.7 in May, signaling a slower decline. However, the sentiment for the second quarter remained muted, primarily due to significant drops in the non-manufacturing sector. The hotel and restaurant industries, in particular, faced challenges due to decreased Chinese tourist arrivals and persistent safety concerns. These issues affected business performance (49.3 compared to 47 in April), order volumes (48 versus 44.4), and employment levels (49.6 against 49.5). Nevertheless, there was a slight improvement in export conditions (48.4 compared to 43.7), driven by increased shipments before the US tariff waiver deadline, along with production (51 versus 46.8) and investment (52 against 51.2). Looking forward, the three-month future business sentiment index rose slightly to 49.5 in June from 49.4 in May, remaining below the neutral 50 threshold, which indicates ongoing caution due to diminishing tariff benefits and weak domestic demand.