2026.04.0309:07:31UTC+00Thailand Business Confidence Declines Amid Middle East Conflict

Thailand’s Business Sentiment Index (BSI) fell to 47.7 in March 2026, its lowest level in seven months, down from 49.6 in February, as confidence was dampened by the impact of the conflict in the Middle East. Total order books contracted (47.9 vs 52.2), export conditions deteriorated (45.5 vs 48.2), and output prices edged higher (50.6 vs 49.7).

The hotel and restaurant sector was hit particularly hard, with sentiment dropping to an eight-month low. This was driven by cancellations of flight tickets and hotel bookings by tourists from the Middle East, as well as the suspension of direct flights from Middle Eastern airlines to Thailand.

Manufacturing sentiment also weakened, led by the plastics pellets and packaging industries. The closure of the Strait of Hormuz pushed energy prices higher, increasing transportation costs and the price of imported feedstocks for plastic production, such as crude oil and naphtha.

Meanwhile, the 3‑month expected BSI declined to 44.2, underscoring concerns that the adverse situation could persist for an extended period.