Industrial sentiment has fallen to a 10-month low, dented by declining exports and uncertainty over the formation of a new government after May’s election, the Federation of Thai Industries (FTI) said on Wednesday.
The FTI said its industrial sentiment index in July fell to 92.3 from 94.1 in June.
Softer global demand and a slower-than-expected economy in China have pulled exports down for nine consecutive months, FTI chairman Kriengkrai Theinnukul told a news briefing.
Political uncertainty, with parties still attempting to form a government three months after the election, also weighed on sentiment, he said.
The FTI index that projects confidence over the next three months also declined, he added.
Businesses were concerned that a prolonged government formation would affect the state budgeting process and the continuity of economic policies.
The country has been under a caretaker government, which has limited authority under the constitution, for five months since the House was dissolved in March.
Parliament is expected to schedule a vote within days on the prime ministerial candidacy of businessman Srettha Thavisin, whio would head a coalition being formed by the Pheu Thai Party.