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Thailand’s Industrial Confidence Index Fell for the Second Month in a Row in May

The Federation of Thai Industries (FTI) announced that its industrial confidence index was 84.3 in May, down from 86.2 in April.

The index fell for the second month in a row. Factors negatively affecting business confidence included the protracted and intensifying war between Russia and Ukraine, and the global oil price and overall commodity prices rose. Meanwhile, domestic demand was slow to recover as inflation and the rising cost of living reduced people’s purchasing power.

In addition, entrepreneurs are concerned about global economic uncertainty due to the impact of the Russia-Ukraine conflict, as well as the lockdowns of cities in China, which is causing supply shortages, especially for semi-finished products such as semiconductors used in the manufacture of automobiles and electronic products, affecting Thailand’s export sector.

However, there are still supporting factors from the gradual relaxation of Covid-19 control measures. This led to an increase in economic activity, while the policy of opening up the country boosted tourism and the domestic economy.

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