BANGKOK Thailand's industrial sentiment rose for the first time in three months in June, bolstered by higher domestic demand, but sluggish exports and uncertainty over the formation of a new government remained a worry, an industries group said on Monday.

The Federation of Thai Industries (FTI) said its industrial sentiment index rose to 94.1 in June from 92.5 in May.

While domestic demand has been supported by a continued recovery in the vital tourism sector, soft global demand continues to crimp Thai exports, a key driver of Thailand's growth, the FTI said in a statement.

The FTI expects 29 to 30 million foreign tourists this year, compared with nearly 40 million in pre-pandemic 2019, FTI vice chair Montri Mahaplerkpong told a briefing.

Political uncertainty persists after Thailand's May national election as a new government has yet to be formed, the FTI said.

Pita Limjaroenrat, the leader of the Move Forward party that won the May election, has been twice blocked by parliament from becoming prime minister. His supporters say this was due to unfair rules and have staged protests to show support for him.

The next parliamentary vote for a new prime minister is set for Thursday.

Move Forward received strong youth support on a platform of anti-establishment policies, including reforming the military, ending business monopolies and amending the royal insult law, which protects the powerful monarchy from criticism.

Reflecting lingering concerns, another FTI index that forecasts industrial sentiment over the next three months slipped to a five-month low in June.

(Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by Muralikumar Anantharaman and Varun H K)