Industries sentiment dropped for a fourth straight month in July to a 14-month low, dented by the country's biggest Covid-19 outbreak to date and a slow vaccine rollout, an industries group said on Monday.
The Federation of Thai Industries (FTI) said its Thai industries sentiment index fell to 78.9 last month from 80.7 in June.
The country began a mass vaccination drive in June but has limited vaccine supply. So far, only 6.8% of its 66 million people have been fully vaccinated.
Last week, Thailand extended stricter containment measures for another month, with lockdown areas expanded in a bid to contain a surge in infections.
The outbreak has increasingly affected factories and worsened a labour shortage, threatening exports -- a rare bright spot in the economy.
"Entrepreneurs are concerned about the unresolved Covid situation, particularly outbreaks at factories. If it can't be controlled, it will affect the manufacturing and export sectors," FTI chairman Supant Mongkolsuthree told a briefing.
Manufacturing capacity for exports has dropped by 5-10%, he said, adding the government should accelerate its vaccination campaign.
The industries sentiment index is likely to drop further for a few months and probably hit a record low, said FTI vice chairman Wirat Uanarumit.
Separately, a modern trade sentiment index hit a 13-year low in the second quarter, hurt by the restrictions, according to a university survey.
On Monday, the government reported 19,603 new Covid-19 cases and 149 deaths, taking the country's total caseload to 776,108 infections, with 6,353 fatalities.
