BANGKOK, Aug. 19 (Xinhua) -- Thailand's industrial confidence climbed for a second straight month in July, driven by surging demand for electric vehicles (EVs), sustained export growth, and government measures to stabilize energy costs and reduce living expenses, data showed on Wednesday.
The Thai industrial sentiment index increased to 90.0 last month, from 88.2 in June, as components of the index showed mixed movement, with total sales, operating costs, and performance improving while orders and output slipping, according to the Federation of Thai Industries (FTI).
The uptrend was attributed to the ongoing expansion of the domestic EV market, with sales increasing 93.07 percent year-on-year in the first half of 2026 and production accelerating in line with import compensation requirements, said Panitarn Pavarolavidya, secretary-general of the FTI.
Panitarn said state interventions utilizing surplus refinery margins to cut pump prices provided relief for household expenditures and mitigated logistical pressures over the short term, while the co-payment scheme bolstered domestic consumption, particularly among small enterprises within the consumer goods, food, and beverage sectors.
However, the industrial sector continued to face risk factors that should be closely monitored, including renewed Middle East tensions that could raise oil prices, shipping costs, and production expenses, he told a news conference.
Based on a survey of 1,330 entrepreneurs across 48 industry groups conducted by the FTI, concerns decreased in several areas, notably energy prices, the domestic economy, and the exchange rate. Meanwhile, concerns rose over the global economy and government policies.
The index forecast for the next three months stood at 96.1 in the July survey, up from 94.5 a month earlier, supported by reduced electricity tariffs for the September-December period, which is expected to ease production cost pressures on businesses.
Panitarn said Thailand's hosting of the 2026 IMF-World Bank Group Annual Meetings, which would help boost economic activity and enhance the Southeast Asian country's international visibility, also contributed to the improvement.
The group urged the government to accelerate the adoption of biofuels as strategic alternatives to reduce reliance on imported petroleum while increasing the value of domestically sourced agricultural feedstock.
It also called for strengthening traceability systems for transparency in the supply chain, enhancing measures to control imports made with forced labor, and supporting small businesses in meeting international standards. ■