Geopolitical tensions have been disrupting global supply chains, increasing production costs and weighing on Thailand's economic growth, according to the Finance Ministry.
Pisit Puapan, director of the Bureau of Macroeconomic Policy, a specialised division within the Fiscal Policy Office (FPO), said on Monday that the Thai Industries Sentiment Index (TISI) declined to 84.7 in May, down from 85.3 in the previous month, as business operators became increasingly concerned about the slowdown in the domestic economy and rising production costs.
Meanwhile, Thailand's Purchasing Managers' Index (PMI) stood at 52.6 in May, down slightly from 52.7 in April. Nevertheless, the PMI remained above the 50.0 threshold, indicating that the manufacturing sector continued to expand.
On Monday, the FPO released its May Economic Report, noting that indicators of private consumption, particularly in the durable goods category, remained positive. The number of newly registered passenger cars and motorcycles in May increased by 15.2% and 2.9%, respectively, compared with the same period last year.
However, the Consumer Confidence Index declined to 49.5 in May, from 50.6 in the previous month, reflecting growing concerns over escalating geopolitical tensions, which have driven global oil prices higher in recent months.
On the private investment front, overall activity remained broadly stable compared with the same period last year.
Imports of capital goods expanded by 19.6% year-on-year in May and, after seasonal adjustment, recorded growth of 0.9% from a month earlier.
In contrast, newly registered commercial vehicles declined by 17.7% year-on-year in May. Even after seasonal adjustment, registrations remained down by 3.8%.
Investment in the construction sector, as reflected by cement sales, increased by 3.9% compared with the same period last year. However, after seasonal adjustment, cement sales contracted by 1.3%.
Meanwhile, investment in the real estate sector, as measured by tax revenue from property transactions, fell by 8.6% year-on-year in May. On a seasonally adjusted basis, it remained down by 0.6%.
Exports continued to expand for the 23rd consecutive month in May, increasing by 10.6% compared with the same month last year, with a total export value of US$34.3 billion.
Exports to key markets -- including the US, Asean-5, the EU and Japan -- grew by 33.5%, 29.7%, 12.1% and 11.7%, respectively. However, exports to India declined by 10.3%.
The number of international tourist arrivals reached 2.35 million in May, representing a 3.5% increase year-on-year. After seasonal adjustment, tourist arrivals expanded by 5.9%.
Thailand's economic stability remained sound. Headline inflation stood at 2.79% in May, while core inflation was 0.92%.
As of the end of April, public debt amounted to 66.6% of GDP, remaining within the fiscal discipline framework established under the State Financial and Fiscal Discipline Act.
External stability also remained strong and was considered sufficient to withstand risks arising from global economic volatility. This was reflected in Thailand's international reserves, which remained at $287.5 billion as of the end of May.
