Thailand's Business Confidence Index in May Drops to 42.5, Hitting a Nearly Five-Year Low

⑴ Thailand's Business Sentiment Index for May 2026 fell from 43.5 in the previous month to 42.5, marking the lowest level since August 2021, as ongoing Middle East conflicts continue to weigh on the economy. ⑵ The production subindex dropped from 48.2 in April to 44, the performance subindex from 47 to 43.7, overall orders from 44.2 to 43.6, and export conditions from 46.4 to 45. ⑶ By sector, manufacturing sentiment weakened across multiple industries, with the automotive sector leading the decline as intensified competition in car sales resulted in sharp drops in production and performance subindices. The food and beverage sector is also facing increasing pressure, with packaging costs still 30% to 50% higher than pre-conflict levels and high shipping fees continuing to delay orders from the Middle Eastern market. ⑷ Meanwhile, non-manufacturing sentiment remained largely unchanged from the previous month. The three-month expected Business Sentiment Index for May rose to 46.9 from last month's 40.9.