Thai industry confidence hits new low

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Thai garmentThe Thai industries sentiment index (TISI) for September 2013 dropped from 91.3 points in August to its lowest level in 23 months at 90.4, Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol said on October 17.

Industry confidence has now been below the 100-level for 15 months in a row as manufacturers are concerned about the impact of the floods in many provinces that are affecting production and logistics, Payungsak said. They are also worried about the global and domestic economies and the continuing political conflict.

He said the fact the TISI is still below 100 shows there is low confidence in the industry sector overall.

Industry confidence for the next three months increased from 98.1 in August to stand at 100.5 on the expectation that orders, overall sales volume, production output and business performance would improve by the end of 2013, the FTI chief said.

Risk factors that could hurt manufacturers’ businesses over the next three months include political uncertainty and the possible fluctuation in foreign exchange rates. The impact of oil prices, global recession and high loan rates were of less concern for business operators in September, he said.

He added that the government should help find funding sources to provide low interest loans to help flood-affected manufacturers recover, and oversee the baht to prevent it from fluctuating too much.

In addition, the government should implement additional stimulus measures to boost domestic consumption and private investment, and keep fuel and electricity charges at suitable levels as they are key production costs.

Thanavath Phonvichai, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said the center has slashed its economic growth projection for Thailand in 2013 to 3.5 from 4.3 per cent.

Thanavath said the revision was made because the country is being affected by global recession, internal political conflict, labour shortages in the industry sector, high living costs, low prices for agricultural products, a slowdown in domestic consumption and the impact of current flooding.

The center also lowered its 2013 export growth projection to 1.9 from 4.1 per cent, with a total value of $233.63 billion, and imports from 7.1 to 3.6 per cent, with a total worth of $258.98 billion.

Trade deficit for the year 2013 is expected at $25.34 billion. Inflation is projected at 2.3 per cent, from the previous forecast of 2.5 per cent.

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Reading Time: 2 minutes

The Thai industries sentiment index (TISI) for September 2013 dropped from 91.3 points in August to its lowest level in 23 months at 90.4, Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol said on October 17.

Reading Time: 2 minutes

Thai garmentThe Thai industries sentiment index (TISI) for September 2013 dropped from 91.3 points in August to its lowest level in 23 months at 90.4, Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol said on October 17.

Industry confidence has now been below the 100-level for 15 months in a row as manufacturers are concerned about the impact of the floods in many provinces that are affecting production and logistics, Payungsak said. They are also worried about the global and domestic economies and the continuing political conflict.

He said the fact the TISI is still below 100 shows there is low confidence in the industry sector overall.

Industry confidence for the next three months increased from 98.1 in August to stand at 100.5 on the expectation that orders, overall sales volume, production output and business performance would improve by the end of 2013, the FTI chief said.

Risk factors that could hurt manufacturers’ businesses over the next three months include political uncertainty and the possible fluctuation in foreign exchange rates. The impact of oil prices, global recession and high loan rates were of less concern for business operators in September, he said.

He added that the government should help find funding sources to provide low interest loans to help flood-affected manufacturers recover, and oversee the baht to prevent it from fluctuating too much.

In addition, the government should implement additional stimulus measures to boost domestic consumption and private investment, and keep fuel and electricity charges at suitable levels as they are key production costs.

Thanavath Phonvichai, director of the Economic and Business Forecasting Centre at the University of the Thai Chamber of Commerce, said the center has slashed its economic growth projection for Thailand in 2013 to 3.5 from 4.3 per cent.

Thanavath said the revision was made because the country is being affected by global recession, internal political conflict, labour shortages in the industry sector, high living costs, low prices for agricultural products, a slowdown in domestic consumption and the impact of current flooding.

The center also lowered its 2013 export growth projection to 1.9 from 4.1 per cent, with a total value of $233.63 billion, and imports from 7.1 to 3.6 per cent, with a total worth of $258.98 billion.

Trade deficit for the year 2013 is expected at $25.34 billion. Inflation is projected at 2.3 per cent, from the previous forecast of 2.5 per cent.

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