Thailand's Federation of Industries (FTI) reports industrial confidence dropped to 89.7 in August 2026 from 90.0 in July, citing energy costs, fragile domestic demand, credit access, and global uncertainty. The FTI proposes three measures: (1) promote E20 ethanol-blended fuel to reduce energy costs and support agriculture; (2) require foreign investors to use Thai suppliers through local content policies and BOI incentives to ensure SME benefits; (3) launch a nationwide campaign to boost purchases of Thai goods alongside government stimulus spending in Q4. The FTI notes 3-month-ahead confidence at 97.0 suggests some recovery optimism, but risks remain from US tariff uncertainty, Middle East tensions affecting supply chains, and weather-related agricultural shocks.