Thailand's industrial confidence falls in May-Xinhua

Thailand's industrial confidence falls in May

Source: Xinhua

Editor: huaxia

2023-06-14 21:12:00

BANGKOK, June 14 (Xinhua) -- Thailand's industrial confidence fell for a second straight month in May, dragged down by lower demand from trade partners amid global economic uncertainty, data showed on Wednesday.

The Thailand Industry Sentiment Index (TISI) declined to 92.5 last month from April's 95.0, as all components of the index decreased, including purchase orders, sales, production volume, operation costs, and turnover, according to the Federation of Thai Industries (FTI).

FTI Chairman Kriengkrai Thiennukul attributed the worsening figure for May to a prolonged slowdown in Thai exports, exacerbated by higher energy prices and financial costs, while consumers' cautious spending over household debt concerns further contributed to the situation.

However, rising demand for industrial products, driven by booming tourism-related industries and China's economic recovery, served as supportive factors, Kriengkrai told a news conference.

The expeted three-month TISI edged down to 104.3 in May from 105.0 a month earlier, as entrepreneurs were concerned about the minimum wage increase, which could impact operating costs for small and medium-sized enterprises and potentially lower foreign investment, he said.

He also emphasized the need for a swift government formation to prevent mistrust among investors and avoid a power vacuum.

The reading was based on a survey of 1,327 respondents from 45 industry groups under the FTI.