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Thailand's Factory Confidence Edges Higher in January

(MENAFN) Thailand's industrial sector opened 2026 on a stronger footing, with business confidence edging higher in January as manufacturers ramped up output ahead of Chinese New Year and a wave of high-season tourists bolstered economic activity, official data revealed Wednesday.

The country's industrial sentiment index climbed to 88.7 in January from 88.2 in December 2025, according to the Federation of Thai Industries (FTI), with most sub-index components posting gains — save for operating costs and turnover. The monthly reading draws from a survey of 1,300 business operators spanning 48 industry groups within the FTI.

FTI Vice Chairman Nava Chantanasurakon credited government-led tourism initiatives — including new direct flight routes and regionally focused events — for channeling income to local businesses and entrepreneurs across the country.

Pre-election campaign activity ahead of February's general vote also proved to be an economic catalyst. "Campaign activities leading up to the February general election also helped stimulate spending in both the public and private sectors, resulting in increased money circulation within the system," Nava told a news conference.

Looking ahead, the three-month outlook index rose marginally to 95.9 from 95.7 recorded a month prior, buoyed by anticipated consumer spending during the Songkran Festival and expectations tied to fiscal policies and budget disbursement under the incoming administration, Nava noted.

Despite the cautious optimism, Nava flagged significant external risks on the horizon, emphasizing the need to monitor uncertainties surrounding geopolitical conflicts and trade wars, which could potentially damage the global trade environment and elevate supply chain risks in the near future.

The FTI also called on authorities to fast-track budget allocations directed at artificial intelligence training programs — with a particular focus on equipping small- and medium-sized enterprises with tools to sharpen operational efficiency and drive down production costs across Thailand's industrial base.

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