The Thai Industries Sentiment Index fell to 87.2 last month from 88.5 in May as all components of the index decreased, including overall sales, total orders, production volume, production costs and turnovers, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,341 entrepreneurs from 46 industry groups under the FTI.
Ongoing political instability and liquidity problems among smaller enterprises as banks tightened lending standards were also attributed to the decline in confidence, the FTI said in a statement.
The index forecast for the next three months declined to 93.4 in June from 95.7 a month earlier, marking its lowest rate in 33 months, brought down by concerns over the national minimum wage hike and volatility of energy prices and supply chains owing to geopolitical tension.
However, the accelerated disbursement of the government budget is expected to help shore up the economy starting in the third quarter of this year, said FTI Chairman Kriengkrai Thiennukul.
The group urged the government to impose anti-dumping measures on foreign products and promote the private consumption of locally made goods, Kriengkrai told a news conference.
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