BANGKOK, 24 June 2015 – The Federation of Thai Industries’ industrial sector confidence index continued to decline in May due to concerns over the condition of the economy, the drought and issues facing the fisheries sector.
Federation of Thai Industries (FTI) President Supan Mongkolsuthee revealed on Tuesday that the industrial confidence index declined to 85.4 in the month of May, from 86.2 in April. It was the fifth consecutive month of decline. According to Mr. Supan, the drop was attributable to worries over negative effects of drought on consumer spending and purchasing power. Cost of production in the agricultural sector has risen, and concern lingers over the European Union’s yellow-carding Thailand’s fisheries industry due to IUU fishing. These factors could affect exportation of fishery products and processed sea food.
Mr. Supan added, however, that the baht’s depreciation has helped rejuvenate the export sector. In the meantime, the Thai economy is expected to improve in the 3rd quarter of this year thanks to state sector investment projects.
Another revision of GDP expectations and other forecasts is expected to take place in the joint meeting of the tripartite committee of private sector representatives.
The FTI president added that the minimum wage raise should be made on a province-by-province basis and in accordance with the decisions of the joint private sector committee in each locale.