Thailand’s business confidence rose to 48.6 in June 2025 from an eight-month low of 46.7 in May, indicating a slower pace of decline. Nonetheless, overall sentiment in Q2 remained subdued, weighed down by sharp declines in the non-manufacturing sector, particularly in hotels and restaurants, amid falling Chinese tourist arrivals and ongoing safety concerns.
These factors dragged down business performance (49.3 vs 47 in April) and overall order books (48 vs 44.4). Moreover, employment (49.6 vs 49.5) fell, notably in tourism and real estate. In contrast, export conditions (48.4 vs 43.7) improved modestly, supported by accelerated shipments ahead of the US tariff waiver deadline, as well as production (51 vs 46.8) and investment (52 vs 51.2). Looking ahead, the three-month expected business sentiment index edged up to 49.5 in June from 49.4 in May, though it stayed below the neutral 50 mark, reflecting ongoing caution amid fading tariff support and subdued domestic demand.
