Thai industrial sentiment at 10-month low on weak exports, political uncertainty

THAILAND’S industrial sentiment dropped to its lowest level in 10 months, dented by declining exports and uncertainty over the formation of a new government after May’s election, an industries group said on Wednesday (Aug 16).

The Federation of Thai Industries (FTI) said its industrial sentiment index in July fell to 92.3 from 94.1 in June.

Softer global demand and China’s slower-than-expected economy pulled exports down for nine consecutive months, FTI chair Kriengkrai Theinnukul told a news briefing.

Political uncertainty with parties attempting to form a government also weighed on sentiment, he said, adding the FTI’s index that projects confidence over the next three months also declined.

Businesses were concerned that a prolonged government formation would impact the state budgeting process and the continuity of economic policies.

Thailand has been under a caretaker government for five months and its biggest parties in parliament have been unable to form a government after Pita Limjaroenrat, leader of the anti-establishment Move Forward party, was rejected as premier by lawmakers allied with the royalist military.

SEE ALSO

Thai economy expanding as policy rate nears stability level: central bank minutes

Thai consumer confidence drops for first time in 14 months over political uncertainty

Thai growth forecasts may need to be revised down: central bank chief

Thailand to hold PM vote next week as new coalition eyes power

Thailand's Move Forward will not back Pheu Thai's PM bid

More

Parliament is expected to schedule a vote within days on the prime ministerial candidacy of businessman and political newcomer Srettha Thavisin, of the second-placed Pheu Thai Party. REUTERS