Thailand’s industrial sentiment fell for the second consecutive month in May, weighed down by a slowdown in exports amid sluggish global economic growth, as well as rising costs and political uncertainty, the Federation of Thai Industries (FTI) reported on Wednesday.
Thai Industries Sentiment Index (TISI) was at 92.5 in May, dropping further from 95.0 in the previous month, making this the second consecutive month of fall.
After breaking down the index, FTI found that all of the sub indexes had decreased: orders, sales, and output, as well as operational costs and earnings.
According to FTI, negative factors include Thailand’s exports continuing to weaken amidst uncertain global economic conditions, which has led to a decreased demand from trading partner nations, while the exchange rate fluctuates.
In addition, Thai businesses are still facing higher expenses, particularly energy costs, as well as raising lending rates, and they remain concerned about political instability despite the election that took place nearly a month ago.
The tourism sector and China’s economic recovery, however, offer firm support for industrial sentiment, which is positive for Thai exports.
