The Thailand Industry Sentiment Index (TISI) increased to 96.2 points in February, the highest level since April 2019, as manufacturing and consumer spending increased while the tourism recovery continued.
More goods orders played a key role in boosting the confidence of manufacturers, said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI).
In January the TISI stood at 93.9 points.
"Thailand fully reopened the country last year. China reopened its country early this year. These are good for the Thai economy," said Mr Kriengkrai.
The government stimulated consumer spending through the "Shop Dee Mee Khuen" tax rebate scheme, which ran from Jan 1 to Feb 15. The scheme increased demand and supply of goods, he said.
In February, prices of raw materials in the global market also began to decrease, leading to lower production costs, according to the FTI. However, Thai manufacturers are still worried about the global economy, which some project to enter a recession this year.
In the FTI's latest survey of 1,316 entrepreneurs across 45 industries, most of the respondents listed global economic health as their top concern, according to 75% of respondents, followed by loan interest rates (53.8%). The impact of the Russia-Ukraine war, costly electricity bills and high inflation in the US and Europe are other worries.
"Economic problems in the US and Europe will affect Thai exports," said Mr Kriengkrai.
The FTI said earlier expensive power bills would cause Thailand to lose competitiveness in drawing foreign investment, which is crucial to drive the Thai economy.
The survey found respondents were not as concerned about fuel prices, listed by 55%, followed by foreign exchange rates (45.1%), the domestic economy (35.5%) and politics (31.3%).
