Industrial sentiment drops in June
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The Thai Industries Sentiment Index (TISI) for June fell to 93.1 from 94.3 in May, according to Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI).
The decline was attributed to lower purchase orders, sales volume, production outputs and operational results amid sluggish global economic growth.
Concerns over economic risk factors, weaker domestic consumption, political conflicts, hazy state economic-stimulus measures and the government mega-projects (Bt350-billion water-management and flood-prevention project, Bt2-trillion basic infrastructure projects) have affected manufacturers’ confidence, the FTI chairman said.
The sluggish economies of trading nations have slowed Thai export growth, while rising production costs and lower economic-growth projections for this year should keep domestic industry confidence below the index 100 mark for the next three months, Payungsak added.
Core industries where the TISI figure dropped below the 100 mark are: textiles, furniture, machinery, energy, petrochemical, rubber products.
Manufacturers urged the government to come up with more effective economic stimulus measures in the second half of this year and boost cooperation with neighbouring countries to expand export markets for small and medium-sized enterprises, the FTI chairman said.
