Industrial sentiment fell in August due to weak domestic demand, high production costs and floods, the Federation of Thai Industries (FTI) said on Wednesday.
The FTI said its industrial sentiment index dropped to 87.7 in August from 89.3 in July, when it had risen for the first time in four months. Domestic demand has slowed down, reflected in a 24% year-on-year slump in car sales in the first seven months of 2024 as banks have tightened up on lending, the FTI said in a statement.
It also said exports had been affected by the rise of the baht to a 19-month high against the US dollar. The baht has appreciated by 2.3% against the dollar this year, to be Asia's second-strongest currency after the Malaysian ringgit.
Floods in parts of Thailand have damaged the agricultural and industrial sectors, as well as slowing construction, the FTI said, adding that there should be government support for flood-hit businesses.
It called on the government to announce economic support measures this year.