BANGKOK, Nov. 11 (Xinhua) -- Thailand's industrial confidence weakened in October, as flooding disrupted production in some industries and pushed up repair costs, while energy prices remained high, data showed on Wednesday.
The Thai industrial sentiment index fell to 89.9 last month from 90.7 in September as all key components of the index declined, including total orders, sales, production output, and operating performance, amid mounting cost pressure, according to the Federation of Thai Industries (FTI).
Floods in farming areas, including rice fields, field crops, and fruit orchards, hit the processed food industry. Diesel prices rose 6.6 percent month on month and liquefied natural gas prices climbed 9.3 percent, raising production and transport costs, said FTI Vice Chairman Montri Mahaplerkpong.
A rush of advance orders, combined with the floods, also caused congestion at Laem Chabang, the country's main deep-sea port, and delayed shipments. Meanwhile, credit to small and medium-sized enterprises (SMEs) kept contracting, hitting hardest the firms that need working capital to resume operations after the floods, Montri said.
However, he said the Southeast Asian nation's hosting of the International Monetary Fund and World Bank Group Annual Meetings was expected to stimulate economic activity and attract foreign investment. Flood relief measures and home repairs also boosted demand for construction materials and electrical appliances.
Investment sentiment remained positive, with the value of investment promotion applications rising 28 percent year on year in the first nine months of 2026. Industrial exports continued to grow, driven by stronger overseas demand for technology and food products, he added.
Based on the FTI survey of 1,335 businesses across 48 industry groups, concerns over energy prices, the domestic economy, government policies, exchange rates, and lending interest rates heightened, while worries about the global economy and access to credit eased.
The index forecast for the next three months rose to 98.5 in the October survey from 97.7 a month earlier, supported by expected excise tax cuts on diesel and E20 gasohol, measures to promote household solar power, and an excise tax restructuring aimed at boosting domestic car production.
Nevertheless, the FTI warned that protests abroad over rising living costs could weaken demand for Thai exports, heavy rain and flash floods in southern Thailand could disrupt raw material supplies, logistics, and production, and that a widening trade deficit remained a key concern. ■
