BANGKOK – Thailand’s industrial sentiment picked up for the first time in three months in June thanks to an easing of COVID-19 restrictions and improved economic activity, an industries group said on Wednesday.
The Federation of Thai Industries (FTI) said its industries sentiment index rose to 86.3 in June from 84.3 in May.
However, negative factors continue to affect sentiment, including rising raw materials and energy prices, supply shortages and a global economic slowdown, the group said.
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 get more foreign tourists, I believe our GDP will get better,” he said.
While a weak baht is good for exports, it increases the cost of imports, so the central bank should ensure currency stability to help trade, Kriengkrai said.
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The baht traded at 36.66 per dollar on Wednesday, near the weakest level in more than 15 years.
The central bank is expected to raise its key rate from a record low of 0.50% next month, which will affect financial costs, Kriengkrai said.
(Reporting by Satawasin Sta[censored]charnchai; Editing by Kanupriya Kapoor)