Thai June Industries Sentiment Rises for First Time in 3 Months as Domestic Demand Improves

Thai Industries Sentiment Index picked up for the first time in three months in June, thanks to an improvement in domestic demand, the tourism sector, and a weaker baht, Federation of Thai Industries (FTI) reported on Monday.

The reading for June was 94.1, up from 92.5 in May.

FTI Chairman Kriengkrai Thiennukul said that there were several reasons underlying the rise in the index. The growth of domestic demand for both personal consumption and tourism is one such factor. Exports were buoyed by the expansion of the construction industry, particularly in real estate and government projects, and by the depreciation of the baht.

Nonetheless, some concerns were raised, such as household debt issues that put pressure on domestic purchasing power, while the export sector continues to slow down due to weak global demand, particularly in the United States, Japan, ASEAN, and Europe, as well as international geopolitical conflicts.