Thailand’s industrial confidence fell for a second straight month in May, dragged down by weaker demand from trading partners amid global economic uncertainty, data showed on Wednesday.
The Thailand Industry Sentiment Index (TISI) declined to 92.5 last month from 95.0 in April as all index components declined, including purchase orders, sales, production volume , operating costs and turnover, according to the Federation of Thai Industries (FTI). .
FTI Chairman Kriengkrai Thiennukul attributed the worsening May figure to a prolonged slowdown in Thai exports, exacerbated by higher energy prices and financial costs, while cautious consumer spending on concerns on household debt further contributed to the situation.
However, rising demand for industrial products, fueled by the boom in tourism-related industries and China’s economic recovery, served as supporting factors, Kriengkrai told a news conference.
The expected three-month TISI dipped to 104.3 in May from 105.0 a month earlier as employers worried about the minimum wage increase, which could affect operating costs for small and medium-sized businesses and potentially lower foreign investment, he said.
He also stressed the need for rapid 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.