BANGKOK (Reuters – Thailand’s industries sentiment index fell to a 5-month low in April. The drop was caused by rising production costs due to Russia’s invasion Ukraine, an industries group reported on Wednesday.

According to the Federation of Thai Industries, its Industries Sentiment Index fell to 86.2 in April after an increase of 89.2 during March.

Kriengkrai Thenukul, chairman of FTI, stated at a press conference that “The conflict between Russia & Ukraine has impacted global commerce and growth as well as certain products’ prices.”

He said that the decline in domestic demand and household expenditure had also affected sentiment.

The government approved Tuesday’s reduction of the excise duty on diesel, to lower high prices. This comes after the 30 baht/litre limit on diesel prices expired on May 20, which was 30 baht/litre.

FTI urges the government at 35 baht a litre for a further cap on diesel prices to support manufacturers.

Kriengkrai stated that while a weaker baht may have boosted exports it has also increased import costs, especially oil.

Five years ago, the baht was at its lowest point against the greenback.

Kriengkrai stated that tourism and exports are key drivers of growth. He added that 6 million tourists will be visiting the country this year, as opposed to nearly 40 million for 2019.