Thai business confidence slumps to 7-month low

The Thai Industries Sentiment Index (TISI) fell to 88.1 points in May, the lowest level in seven months, as business confidence remains low, partly attributed to the impact of new geo-political conflicts on the economy, says the Federation of Thai Industries (FTI).

- LAMONPHET APISITNIRAN

The indicator decreased for a third consecutive month after tallying 89.9 points in April.

"This shows that entrepreneurs' confidence in the economy has not improved," said Nava Chantanasurakon, vice-chairman of the FTI.

While the business sector has struggled to deal with weak consumer purchasing power and the sluggish domestic economy, a territorial dispute between Thailand and Cambodia has erupted, followed by the Israel-Iran war, which have added to entrepreneurs' worries.

Mr Nava said businesses are concerned about the escalating tensions in the Middle East as it will affect oil prices and trade, at least in the short term.