Thailand’s industrial sentiment rose for the first time in three months in June, bolstered by higher domestic demand, but sluggish exports and uncertainty over the formation of a new government remained a concern.
The Federation of Thai Industries (FTI) said its industrial sentiment index rose to 94.1 in June from 92.5 in May.
While domestic demand has been supported by a continued recovery in the vital tourism sector, the FTI said in a statement that soft global demand continues to crimp Thai exports – a key driver of Thailand’s growth.
FTI vice chair Montri Mahaplerkpong told a briefing that the federation expects 29-30 million foreign tourists this year, compared with nearly 40 million in pre-pandemic 2019.
According to the FTI, political uncertainty persists after Thailand’s May national election as a new government has yet to be formed.
Pita Limjaroenrat, the leader of the Move Forward Party that won the May election, has been blocked by Parliament from becoming prime minister and suspended from his parliamentary duties pending the conclusion of an investigation into his electoral eligibility. (NNT)
