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Thai Industries Sentiment Index in July drops on border conflicts: FTI

Thai Industries Sentiment Index in July drops on border conflicts: FTI

Provided by Nation.

Thai Industries Sentiment Index falls to 86.6 in July, lowest in 36 months, as border conflict with Cambodia and US tariffs weigh on confidence.

The Federation of Thai Industries (FTI) announced on Tuesday that the Thai Industries Sentiment Index (TISI) in July fell to 86.6 from 87.7 in June, marking its lowest level in 36 months. The decline was mainly attributed to escalating border conflicts between Thailand and Cambodia.

Industry confidence hits three-year low

FTI president Kriangkrai Thianukul said at a press conference that the July TISI was compiled from a survey of 1,356 FTI members across 47 industries.

The survey found that:


70.1% of business operators were concerned about the domestic economy,
66.7% were worried about the global economic situation, and
57.2% expressed concerns over government policies.
Kriangkrai warned that sentiment is likely to drop further in the next three months due to the impact of US reciprocal tariff measures, which are expected to weaken Thailand’s competitiveness in global markets.

Border trade plunges amid Thai-Cambodian tensions

The FTI reported that the Thai-Cambodian border conflict has already had a severe economic impact. Border trade in June fell by 32.9% from May, to 10.9 billion baht, and was down 23.3% year-on-year.

Other factors weighing on sentiment include delays in the disbursement of this year’s and next year’s budgets, as well as concerns over the rollout of the 1.15 billion baht economic stimulus package.Positive factors supporting July sentiment

Despite the decline, Kriangkrai said there were two positive factors helping to cushion the impact on businesses:


The Half-Half tourism stimulus programme, backed by a 1.75 billion baht budget, and
1.06 trillion baht in investments during the first half of 2025, representing a 138% year-on-year increase.


FTI’s proposals to boost business confidence

The FTI urged the government to take urgent action to restore business sentiment:


Rehabilitation measures for companies affected by the Thai-Cambodian conflict, including support for Thai investors in Cambodia.
Soft loans and eased loan approval conditions for SMEs and businesses hit by US tariffs, along with assistance to adapt to new trade barriers.
Accelerated infrastructure investment for natural resource management, flood prevention, and improved water distribution to strengthen ecological resilience.

The​ Nation's​ Editorial: thenation@nationgroup.com

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AFP-JIJI PRESS NEWS JOURNAL


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