Thailand's industrial confidence rose for the first time in four months in June, supported by the government's economic measures aimed at reducing living costs and stimulating domestic consumption, data showed on Wednesday. The Thai industrial sentiment index increased to 88.2 last month, rebounding from 84.7 in May as all components of the index improved, particularly operating expenses, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,328 entrepreneurs across 48 industry groups under the FTI.
Additionally, easing geopolitical tensions in the Middle East has resulted in a decline in global oil prices, lowering energy and transportation costs for the industrial sector and reducing the risk of raw material shortages, said FTI vice chairman Virat Chatdarong.
However, manufacturing activity across several industries continued to face pressure, as reflected in the drop in capacity utilization following reduced orders, especially in the steel, textiles, and apparel sectors, Virat told a news conference.
The index forecast for the next three months stood at 94.5 in the June survey, jumping from 91.7 a month earlier, as the government's household solar scheme and energy restructuring plans are expected to boost demand in the related industrial supply chain.
The group urged the government to develop a clear strategic framework and measurable goals to strike a proper balance between electricity pricing, competitiveness, and the Southeast Asian country's transition toward a low-carbon economy.
It also called for campaigns to promote the consumption of locally made products, as well as incentive measures to encourage the private sector to procure domestically manufactured goods through the Made in Thailand initiative.
Thailand's industrial confidence rebounds in June
