The Federation of Thai Industries (FTI) sentiment index fell in January after four consecutive increases late last year, as worry set in about the global economic outlook and trade policy espoused by the new US president.
FTI vice president Suparat Sirisuwannangkura said the index stood at 87.2 at the end of last month, down from 88.5 in December, the first drop in five months.
He said that, overall, industries were worried about the fluctuation in the global economy, the exchange rate and the upward trend in oil prices. They also worried about by the rising minimum wage.
Entrepreneurs in the South were concerned about the effect of the widespread floods in the region in early January.
As a result, overall purchases, sales and production, and business performance moved in the same downward direction.
The industry confidence index for January dropped for small and medium-sized business, although large conglomerates showed rising confidence.
In general, industries were still optimistic about the next three months, as the outlook index rose slightly to 100.4 points in January, from 100 in December. They anticipate benefits from government spending and investment to help stimulate the economy. The rising trend for farm produce signals a positive trend for domestic consumption and business expansion of local companies, Mr Suparat said.
Respondents to the survey wanted the government to reduce the fluctuation in the currency exchange rate and improve transportation with neighbouring countries, in order to raise trade and investment value.
They also needed more relaxed conditions for accessing funding for SMEs and greater support for research and development on new products for niche markets.