This was disclosed yesterday by the Federation of Thai Industries (FTI).
FTI said statistics for the Industrial Confidence Index for January of this year showed it fell to 87.2 points from 88.5 in December 2016.
This is the first time that the index has fallen in a five-month period. Growing uncertainty over the global economic outlook was attributed primarily to the fall.
Other factors such as the planned minimum wage hike and the southern flood crisis also contributed to the drop in the index, FTI said.
Meanwhile automobile production figures for January 2017 rose by 3.12% over the same period last year.
This increase in production output was driven primarily by the increase in domestic demand which rose by 10.5%.
Automobile exports however contracted significantly by 14.5% falling to its lowest point in 19 months.
This has been attributed to the drop in foreign demand for pickup trucks which saw a contraction in all of Thailand’s major markets.
Consequently, all the major manufacturers have voiced concerns that previous export targets for the year might possibly not be met, FTI said.