Confidence Index Surges in November FTI Urges Government to Accelerate Flood Recovery and Promote Clean EnergyMr. Kriengkrai Thiennukul, Chairman of the

The increase in the index was driven by several key factors. These included consumption stimulus measures such as the Half-Half Plus scheme, the Travel and earn back, and the Welfare Card top-up, which have helped ease the public's cost-of-living burden and have positively affected the consumption of food, beverages, and other consumer products. In addition, the onset of the tourism high season has positively boosted demand for goods and industries related to the tourism sector. At the same time, Entrepreneurs have accelerated production in response to increased orders ahead of the New Year period and the series of long holidays in December.
Trade negotiations aimed at expanding Thailand's export markets, such as the government-to-government (G2G) rice trade with China (500,000 tons) and Singapore (100,000 tons) are helping broaden export opportunities for farmers, thereby increasing regional income and purchasing power. Furthermore, Budget disbursement acceleration for Fiscal Year 2026 (as of October 1 - November 21, 2025) reached 24.18%, compared with the first-quarter target of 33%, contributing to improved liquidity circulation within the economy.

However, in November there were several negative factors weighing on economic conditions. These included the flooding situation in the southern region has had widespread impacts on industrial facilities and households, causing estimated damages of approximately THB 20-30 billion during December 2025. The impacts are expected to continue into 2026, with estimated losses of around THB 90 billion. At the same time, the temporary suspension of the conflict with Cambodia indicates that tensions remain prolonged, continuing to adversely affect cross-border trade. In addition, an Intense competition from imported goods has put pressure on domestic entrepreneurs. During the first 10 months of 2025, imports increased by 16.3% year-on-year and 8.68% month-on-month, particularly in electrical circuit boards (+28.69% YoY), plastic products (+14.33% YoY), and steel (+8.23% YoY). Furthermore, The Thai baht has remained stronger than the currencies of regional competitors, appreciating by 5.77% year-to-date (comparing January 1 with November 26, 2025), which has negatively affected the income and competitiveness of exporters.

Based on a survey conducted in November 2025 among 1,356 entrepreneurs across 47 industry clubs under the Federation of Thai Industries (FTI) indicate that concerns have declined in several areas, including the domestic economy (61.7%), the global economy (56.2%), government policies (42.3%), Loan accessibility (26.4%), energy prices (26.2%), and lending interest rates (20.4%). In contrast, concerns among entrepreneurs have increased regarding the exchange rate particularly from the perspective of exporters at 49.5%.

Meanwhile, the three-month forecast for the Thai Industrial Confidence Index stood at 94.9, increasing from 93.5 in October 2025. This improvement was driven by several positive factors, including the resolution of the Energy Regulatory Commission (ERC) to reduce the electricity tariff for the January-April 2026 period to 3.88 baht per unit, which is expected to help lower operating costs for businesses and ease the cost of living for the public. In addition, the Motor Expo 2025, held from 29 November to 10 December 2025, is expected to help stimulate domestic car sales.
In addition, the "Half-Half Plus" Phase 2 scheme and the Welfare Card top-up, which are scheduled to begin in January 2026, are expected to stimulate spending at the beginning of the year.

Despite these positive signals, the Thai economy continues to face significant challenges. The economic and household damage from the major flood crisis continue to require urgent rehabilitation and relief efforts to restore normal conditions swiftly. Moreover, the Delays in trade negotiations with the US may pose potential risks to Thailand's export sector in the future.
Recommendations

1. The government should expedite relief measures to assist entrepreneurs affected by the southern floods, such as accelerating insurance compensation payments, establishing a machinery repair fund, providing 0% interest loan facilities, and granting exemptions on land and building taxes for flood victims, among other measures.
2. The government should elevate flood crisis resolution and water management to a national agenda by accelerating the development of flood-prevention infrastructure, improving drainage systems, enhancing forecasting and early warning technologies, developing a population database system, strengthening disaster management structures, and revising city planning to improve long-term disaster prevention and response efficiency.
3. The government should consider expanding direct purchases of electricity from clean energy sources between producers and energy users (Direct PPA) to other industrial sectors beyond data centers, in order to increase energy options and support the industrial sector's transition to clean energy.
   In summary, the Federation of Thai Industries (FTI) has complied the results of the TISI survey and data on economic and industry indicators from various agencies over the past three years. The data has been prepared as a dashboard, published on the Industry Data Space (iDS) website of FTI,
   to facilitate entrepreneurs and the public access of helpful information for their business operations.
   The service can be accessed at www.fti.or.th/ids
   The Federation of Thai Industries (FTI) aims to "Strengthen Thai Industries for Stronger Thailand"

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