Industrial sector confidence slid for the first time in five months in January, as industry captains worried about the drought and risks evolving from the economic situation in several countries.
The Thai industries sentiment index (TISI) dropped to 86.3 points in January, from 87.5 in December 2015, said Suphan Mongkolsuthee, chairman of the Federation of Thai Industries.
The decline in confidence was influenced by drought concerns, risk in the global economy, particularly in China which is a major trading partner of Thailand, low domestic spending and worries about slowing purchasing power.
Manufacturers had paid high attention to domestic consumption and tried to encourage more trade and investment in neighbouring countries, which would help to boost the Thai economy and generate more revenue in 2016, Mr Suphan said.
Respondents to the FTI survey felt the downward trend of oil prices would benefit producers through lower production costs.
Industry confidence in the outlook for the next three months was at 100.8 points, down from December's102.7 points on manufacturers' concerns about possible fluctuations in the exchange rate, slowing domestic consumption and liquidity problems for small- and medium-sized industries.
However, the index remaining above 100 showed industries still had overall confidence in business prospects for the next three months, Mr Suphan said.