Thailand’s Industrial Sentiment Hit 14-Month Low in July as Covid-19 Spreads Nationwide

Thailand’s Industrial Confidence Index fell to a 14-month low in July, as the Covid-19 outbreak spreads throughout the country and remains uncontrollable, according to Santi Vilassakdanont, chairman of the Federation of Thai Industries (FTI).

The index has fallen for four consecutive months, to 78.9 from 80.7 in June, as a result of lockdowns and a night curfew between 21.00 and 04.00 hrs. in 13 provinces, including Bangkok, between July 20 and August 2, 2021.

FTI stated that lockdown measures and tougher travel restrictions are incapable of preventing the spread of coronavirus, resulting in financial hardship for many households and the worst economy in the private sector, particularly SMEs.

Additionally, a series of outbreaks and a delayed pace of vaccine rollout in Thai factories raise concerns that production output may be smaller due to a labor shortage. 

However, as Thailand’s major trading partners gradually recover and the Thai baht weakens, the imports sector is rebounding and is projected to be a key driver of the August Industrial Confidence Index.