Thailand's industrial sentiment index dropped for a third straight month in May due to the impact of the war in the Middle East, slowing production and a shortage of labour, the Federation of Thai Industries (FTI) reported on Wednesday.
The FTI said its industrial sentiment index fell to 84.7 in May from 85.3 in the previous month.
A leading business group last week raised its 2026 economic growth forecast to 1.6%-2.0%, citing support from government stimulus measures. Last year's growth was 2.4%.
In April, Thailand's Manufacturing Production Index (MPI) fell to 92.76 points, down 0.36% year-on-year.
Several key sectors dragged down the MPI, with general machinery down 12.9% year-on-year as overseas orders of air conditioners slowed.
Palm oil output fell 16.1% due to extreme heat reducing crop yields, while chemical fertilisers and nitrogen compounds plunged 28% amid raw material shortages linked to Middle East instability.
