Thai Industrial Confidence Drops to 11-Month Low in May Due to the New Wave of COVID

Thai industry sentiment index (TISI) declined for the second consecutive month in May, reaching an 11-month low, due to the third wave of the Covid-19 outbreak, which is still spreading throughout the country, triggering the detection of new clusters, particularly among industrial plants.

The Federation of Thai Industries (FTI) said its index fell to 82.3 points, dropping from a last reading of 84.3 points in April.

Besides this, Thailand is battling a sluggish vaccination rollout coupled with strict Covid-19 control measures, prompting economic activity to decelerate and domestic demand to slowly recover.

For exports, there are still risk issues associated with container shortages and high freight charges, as well as chip scarcity in the automotive and electronic industry.