The Thai Industries Sentiment Index (TISI) fell for the fourth month in a row and was the lowest in seven months in April, but the Thai Chamber of Commerce expects the economy to bottom out soon and start improving.
The Federation of Thai Industries (FTI) calculated the TISI from a survey of 1,202 industrialists in 43 industries and reported the index fell from 87.7 in March to 86.2 in April, the lowest since October.
FTI chairman Supant Mongkolsuthree said on Monday that members were worried about the Thai economic slowdown and water shortages, which affected consumption and spending in the agricultural sector in particular. Long holidays in April also affected cargo deliveries and other logistics services.
They warned that under the circumstance small- and medium-sized industries could have liquidity problems.
Industrialists urged the government to increase the prices paid for farm products to stimulate the economy and to support operators more, including small and medium businesses investing in neighbouring countries and improving production technology to boost competitiveness.
Survey respondents saw potential in markets in neighbouring countries.
The FTI said the industries sentiment index for the next three months improved from 100.4 in March to 102.1 in April.
Somkiat Anurat, vice chairman of the Thai Chamber of Commerce, said on Monday that data from many organisations indicated the economy had already reached rock-bottom and would gradually recover in the second half of this year.
Information from members of the chamber nationwide also supported the trend to gradual recovery.
Pratya Samalapa, head of the chamber's eastern economic development committee, said operating results were slowing down, but there was a sign of recovery because 37% of local operators were recording higher profits.
Jit Siratranont, head of the chamber's central plain economic development committee, said that consumption was slowing down in the region because of low prices for farm products, but border trade and the service sector were growing well.
Positive signs for economic recovery included the profits that had fallen slower and the businesses that held smaller inventories, but local operators continued to face high costs, he said.
Praphan Techasakolkitkun, head of the chamber's northeastern economic development committee, said the decrease in consumption and investment in the private sector considerably affected agriculture, trade and industries in the region while border trade and tourism were expanding.
Investment would increase there in the next three months to prepare for the Asean Economic Community, the development of special economic zones, and the construction of double track railways, he said.
Wirote Jirattikalchote, head of the chamber's northern economic development committee, said border trade and tourism were improving while agricultural, industrial and service sectors were slowing down.
Watthana Thanasakcharoen, head of the chamber's southern economic development committee, said that trade, including border trade, and consumption were low and tourism would be the only factor pushing economic recovery in the southern region.