In September, Thailand’s industrial sentiment index fell to a 27-month low due to weak demand, flooding, high household debt, and a strong baht impacting exports and manufacturing.
In September, Thailand’s industrial sentiment index fell to a 27-month low, reaching 87.1, reflecting subdued domestic demand, flooding effects, and a strong baht. The Federation of Thai Industries (FTI) linked this decline to high household debt, which has reduced purchasing power and affected auto sales due to stricter bank lending.
The appreciating baht, which strengthened by 2.5% against the U.S. dollar this year, hindered exporters’ profit margins, as it reached its highest level in over two and a half years. Additionally, increased competition from low-priced Chinese imports has strained Thailand’s manufacturing sector.
Flooding has also negatively impacted agriculture, industry, and tourism. The FTI advised the government to implement more stimulus measures to alleviate these challenges and suggested that the Bank of Thailand maintain a balance in exchange rates and interest rates to support economic needs.
Source : Thailand’s Industrial Sentiment Hits 27-Month Low in September Amid Weak Demand
