The Thailand Industry Sentiment Index (TISI) continued to rise in March to 97.8 points, the highest in 10 months, thanks to the tourism recovery and farmers' greater purchasing power, says the Federation of Thai Industries (FTI).
Improving tourism boosted demand for goods and services, while higher agricultural prices brought more revenue to farmers in many regions, said Wiwat Hemmondharop, vice-chairman of the FTI.
"The regional economy is expected to keep growing, which will increase people's purchasing power," he said.
The construction sector also grew in March, resulting in positive effects across related industries, said Mr Wiwat.
The March TISI was based on a survey of 1,316 enterprises across 45 industry clubs under the FTI. Despite better industry sentiment this month, respondents said they were still worried about high production costs related to prices of raw materials and energy.
The FTI suggested the Energy Regulatory Commission (ERC) consider reducing the power tariff in order to make electricity bills less expensive. Earlier the ERC announced that a new power tariff of 4.77 baht per kilowatt-hour (unit) will be imposed between May and August.
The FTI wants the ERC to keep the rate below 4.4 baht a unit, said Sorakit Manbuphachati, deputy secretary-general of the FTI.
"The tariff should not be greater than 4.4 baht a unit to avoid an unpleasant impact on businesses and households, as well as the country's ability to draw foreign investors," he said.
Global economic prospects in 2023 were also a concern among entrepreneurs because interest rates have continued to increase, especially following the US Federal Reserve's hikes.
Earlier the World Bank warned of a global recession in 2023 after central banks raised interest rates in response to high inflation.
The Bank of Thailand's Monetary Policy Committee last month hiked its policy rate by 0.25 percentage points for a fifth consecutive meeting, from 1.50% to 1.75%, as it continued to try to tame inflation.
"Higher interest rates will not only affect Thai businesses, especially small and medium-sized enterprises, but also weaken international trade," Mr Wiwat said.
In another development, the Joint Standing Committee on Commerce, Industry and Banking plans to meet on May 3 to discuss proposals regarding Thai economic development. The business sector gave the proposals to political parties' representatives following a debate on election campaigns, which was held by the FTI.