BANGKOK, June 19 (Xinhua) -- Thailand's industrial confidence continued to drop in May due to weak domestic demand on the back of economic uncertainty and high levels of household debt and non-performing loans, data showed on Wednesday.
The Thai Industries Sentiment Index fell to 88.5 last month from 90.3 in April as all components of the index decreased, including overall sales, total orders, production volume, production costs and turnovers, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,329 entrepreneurs from 46 industry groups under the FTI.
The decline in confidence was attributed to higher production costs as fuel prices and freight rates soared amid ongoing geopolitical issues, the FTI said in a statement.
Additionally, Thai products encountered difficulties in competition owing to the availability of competitively priced foreign products in both the domestic and regional markets.
The index forecast for the next three months declined to 95.7 in May from 98.3 a month earlier, brought down by the risks of fuel price volatility and delays in international freight transportation stemming from geopolitical tension in the Middle East.
However, the accelerated disbursement of the government budget is expected to stimulate the economy over the remaining months of the year, along with tax incentives to promote tourism during the low season.
FTI Vice Chairman Nava Chantanasurakon urged the government to implement measures to address the impacts of elevated fuel prices and provide small and medium-sized enterprises access to funding sources to aid business development and expansion.
The group also called for measures to encourage the consumption of goods and services associated with Thai cultural strengths, such as local cuisine, apparel, and sporting products, he told a news conference. ■
