04.06.202608:13:30UTC+00Thailand Business Morale at Near 5-Year Low

Thailand’s Business Sentiment Index declined to 42.5 in May 2026, down from 43.5 in April, reaching its lowest level since August 2021 amid the ongoing conflict in the Middle East. Confidence weakened further across key components: production (44 vs. 48.2 in April), performance (43.7 vs. 47), overall order books (43.6 vs. 44.2), and export conditions (45 vs. 46.4).

By sector, manufacturing sentiment deteriorated across several industries, led by the automotive sector, where production and performance sub-indices dropped sharply due to intensifying competition in vehicle sales. The food and beverage industry also came under increased pressure, with packaging costs remaining 30% to 50% above pre-conflict levels and persistently high freight rates causing delays in orders from Middle Eastern markets. In contrast, sentiment in the non-manufacturing sector was broadly stable compared with the previous month.

Looking ahead, the three-month expected Business Sentiment Index improved, rising to 46.9 in May from 40.9 in April.