Mounting economic woes pummel industry's morale

A storm of economic pain has hit local entrepreneurs, causing the Thai Industries Sentiment Index (TISI) to fall to an eight-month low in June, with the situation likely to lead to a dim industry outlook over the next three months, says the Federation of Thai Industries (FTI).

- LAMONPHET APISITNIRAN SOMRUEDI BANCHONGDUANG

The index declined for a fourth consecutive month to 87.7 points, down from 88.1 points in May.

The negative factors that have dented business confidence include the territorial dispute between Thailand and Cambodia, which has caused the former to change the opening times of border checkpoints, affecting border trade.

Phnom Penh has also banned refined oil imports from Thailand in response to the conflict.

"Amid these problems, the US imposed a sectoral tariff on steel and aluminium products, doubling the rate in early June to 50%, from 25%," said Nava Chantanasurakon, vice-chairman of the FTI.

"This tariff policy reduces the competitiveness of Thai entrepreneurs and affects business confidence."

Other problems in June included the 12-day Israel-Iran war that triggered concerns about global oil price fluctuations, an influx of low-cost imports into the Thai market which continued to put pressure on local manufacturers, and a fall in farm product prices.