Thailand’s Industrial Confidence Dips for 4th Straight Month
(MENAFN) Thailand’s industrial confidence declined for the fourth consecutive month in June, pressured by escalating border disputes with Cambodia, intensified U.S. trade tariffs, and ongoing geopolitical unrest, new data revealed on Wednesday.
The Federation of Thai Industries (FTI) reported the industry sentiment index slid to 87.7 in June from 88.1 in May, marking its weakest point since nine months ago. The downturn was widespread across most measured sectors.
This index was derived from a survey of 1,342 business leaders spanning 47 industry categories under the FTI umbrella.
According to the FTI, stricter border enforcement with Cambodia severely disrupted cross-border commerce and transit trade. Notably, the halt on imports of gasoline and liquefied natural gas from Thailand to Cambodia played a significant role in dragging down confidence.
Further weighing on sentiment were the U.S. government's doubled tariffs on steel and aluminum, which diminished the competitiveness of Thai manufacturers. Energy price volatility, a slowdown in export shipments, and decreased foreign tourist visits due to the Israel-Iran conflict also contributed to the negative outlook.
Looking ahead, the industrial confidence index for the coming three months contracted to 90.8 from 91.7 in May, as businesses remained concerned about potential expansions of U.S. tariffs, ongoing Cambodia border tensions, and rising minimum wages in certain industries.
The FTI urged policymakers to accelerate the release of economic stimulus funds and prioritize trade negotiations to soften the blow of looming U.S. tariff actions.
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