Thailand’s industrial sector experienced a decline in sentiment for the third consecutive month in May, according to the Federation of Thai Industries. The downturn is attributed to the continuing conflict in the Middle East, which is disrupting production and impacting overall economic confidence. A persistent labor shortage is also contributing to the negative trend, hindering manufacturing output. The index reflects concerns among business operators regarding rising costs and decreased demand. This sustained decrease signals potential challenges for Thailand’s economic growth in the coming months. The federation indicated that businesses are closely monitoring geopolitical developments and their potential effects on supply chains and market stability. Further declines could necessitate government intervention to support the industrial sector.