Thailand’s industrial sentiment increased for the first time in three months in June, as the country’s Covid-19 situation continued to improve, according to data released on Wednesday.
The Federation of Thai Industries (FTI) reported that its industries sentiment index reached 86.3 in June, up from a reading of 84.6 in May.
The government’s decision to loosen more Covid-19 restrictions, resulting in a downgrade of the Covid warning level from level 3 to level 2, was a major factor in the uptick in industrial sentiment, which in turn led to the resumption of an economic activity, coupled with the opening of the country to foreign tourists. These factors contributed to the recovery of domestic demand.
However, there were negative impacts from Russia’s invasion of Ukraine, which resulted in soaring energy prices and a persistent supply shortage issue. Meanwhile, several countries are in danger of entering a recession due to inflationary pressures.