Thailand’s industrial mood rises for the first time in 3 months

BANGKOK, July 20 (Reuters) – Thai industrial sentiment picked up for the first time in three months in June on the back of an easing of COVID-19-related restrictions and improving economic activity, a senior official said on Wednesday. industry group.

The Federation of Thai Industries (FTI) said its Industrial Confidence Index rose to 86.3 in June from 84.3 in May.

However, negative factors continue to affect sentiment, including rising commodity and energy prices, supply shortages and a global economic slowdown, the group said.

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The impact of a recession and weakening global purchasing power on Thai exports will also be monitored, FTI Chairman Kriengkrai Thiennukul told a news conference.

“If there is no big impact and we attract more foreign tourists, I think our GDP will improve,” he said.

While a weak baht is good for exports, it raises the cost of imports, so the central bank should provide currency stability to help trade, Kriengkrai said.

The baht was trading at 36.66 to the dollar on Wednesday, near the lowest level in more than 15 years.

The central bank is expected to raise its policy rate (THCBIR=ECI) by a record 0.50% next month, which will affect financial costs, Kriengkrai said. Read more

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Reporting by Satawasin Staporncharnchai Editing by Kanupriya Kapoor

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