Thailand’s July Industry Mood Falls to 10-Month Low as Household Spending Remains Weak

Thailand’s industry confidence index dropped to 92.3 points in July, the lowest in 10 months, as rising costs of living and political uncertainty continued to weigh on household spending, the Federation of Thai Industries (FTI) revealed on Wednesday. 

The Federation of Thai Industries (FTI) said that there were a number of negative factors that contributed to the index falling from 94.1 in June to 92.3 last month, the lowest level since September 2022. This was due to an overall drop in sentiment across all sub-indices, including sales, orders, production output, costs, and financial health. Inflationary pressures and household debts, which dampen spending, as well as increasing interest rates and political uncertainty over new government formation, are examples.

The global demand slowdown and China’s struggling economic recovery were both external factors that contributed to a drop in the confidence index for Thailand’s manufacturing sector.

The FTI noted, however, that there is still backing from the tourism industry.