The Digital Industry Sentiment Index rose in the second quarter to 54.1, from 54.0 in the first quarter, and has remained above the 50-threshold for two consecutive quarters, according to the Digital Economy Promotion Agency (Depa).
The increase is mainly due to entrepreneurs' confidence in the economy's overall improvement as a result of the growth in the tourism sector and private consumption. China's reopening has also eased global supply chain problems, reducing the cost of production.
Depa conducted the confidence survey in five sub-industries: hardware and smart devices, software, digital services, digital content, and telecommunications.
According to Depa president and chief executive Nuttapon Nimmanphatcharin, the survey also found an increase in production volume, new employment, and business costs, while financial performance, product orders, and business investment declined.
He said Thailand's economy has benefitted significantly from the recovery in tourism and private consumption, hence boosting the private sector's purchasing power.
Furthermore, the reopening of China had a positive effect on the production costs of Thailand's tech industry, as it led to a drop in the prices of chips and electronic parts.
However, business operators were worried about the uncertainty surrounding the formation of a new government. Some operators decelerated their new investment plans to wait to see the what the policies of the new government would be.
Entrepreneurs anticipated that the government would provide a clear policy to facilitate access to financial resources, foster a digital workforce, and attract international digital talent.
The confidence of the four sectors surveyed was above the 50 mark, with hardware and smart devices at 54.6, software at 56.9, digital services at 52.1, and digital content at 52.4, while telecommunications was the only industry that had an index value below 50, at 46.8.
The digital industry sentiment index is carried out quarterly through a sampling survey of around 500 enterprises in the digital industry which are registered in Depa's database.
The industry sentiment index adheres to an assignment of the Ministry of Digital Economy and Society, which aims to accelerate the development of the country's digital economy and society based on data and information in order to create more broad-based benefits for society.
The survey of the confidence of digital businesses focused on business performance, production capacity, trade and services, business management, employment, operating and manufacturing costs, and digital projects that have been carried out in collaboration with partners.