Thai industrial mood at 8-month low on weak exports, political uncertainty

THAILAND’S industrial sentiment in May hit its lowest level in eight months, dented by weak exports and uncertainty over the formation of a new government, an industries group said on Wednesday (Jun 14).

The Federation of Thai Industries (FTI) said its industrial sentiment index in May fell for a second consecutive month to 92.5 from 95.0 in the previous month.

Slowing global growth has hurt demand for shipments, with exporters also affected by exchange rate volatility, FTI chairman Kriengkrai Theinnukul said in a statement.

Uncertainty persists over post-election politics as the next government has yet to be formed after a national poll in May, he said.

Prime ministerial frontrunner and leader of the Move Forward Party, Pita Limjaroenrat, has formed an alliance with seven other parties but faces an uphill battle in seeking support from an unelected Senate to back him in a legislative vote on the premier, which is expected by August.

Another FTI index that forecasts industrial sentiment over the next three months also dropped because of concerns over possible wage increases. REUTERS