BANGKOK, June 17 (Xinhua) -- Thailand's industrial confidence extended its decline in May, dragged by a slowdown in the manufacturing sector amid higher operating costs and energy prices linked to the Middle East conflict, data showed on Wednesday.
The Thai industrial sentiment index declined to 84.7 in May from 85.3 in April, as all components of the index decreased, except for operating expenses, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,347 entrepreneurs across 48 industry groups under the FTI.
Furthermore, labor shortages in the construction, agriculture, and manufacturing sectors remain a major obstacle to business operations, resulting in reduced output capacity and production process delays, said FTI chairwoman Pimjai Leeissaranukul.
The index forecast for the next three months stood at 91.7 in the May survey, down from 92.8 a month earlier, as the outlook remained clouded by geopolitical uncertainties and rising production costs being transferred to retail prices, Pimjai told a news conference.
However, she noted that government stimulus measures, including the copayment program and support for state welfare cardholders, are expected to boost domestic demand and sustain manufacturing output in the future.
The group urged the government to extend targeted fuel-price subsidies within the logistics industry to mitigate energy-related pressures and help contain inflationary and cost-of-living strains. ■
