Industrial sentiment index dives in August
The Thai Industrial Sentiment Index (TISI) in August plunged to its lowest level in the past five months due to many negative factors, including a rise in interest rates, appreciation of the baht, flooding and the volatile global economy, according to the
FTI chairman Payungsak Chartsuthipol yesterday said the index in August this year was at 102.5, the lowest level since March, when the index was at 102.3.
MAJOR CONCERNS
The major concerns for Thai industrialists were high operating costs, increased interest rates, the baht appreciation - which has affected the export sector - the fragile world economy, and serious flooding.
For 15 industries, including textiles, leather, steel and printing and packaging, the index was lower than 100, reflecting low confidence due to the economic factors that had an impact on their production.
These industries saw exports to the US, Europe, China and the Middle East shrink in August due to the volatile global economy.
"The drop of TISI in |August was in all industries, affecting large-scale, small and medium-sized enterprises.
"Only the industries in the southern part of the country maintained good confidence," he said.
Payungsak said the index over the next three months, however, would rise to 110 from 107.4 surveyed last month, reflecting a recovery in confidence in the near future.
The industrial sectors are also concerned about political uncertainty, the trend of the baht's appreciation, and the minimum wage increase to Bt300 per day. The FTI still insists that the mechanism of the National Wage Tripartite Committee should be used.
He added that the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) would ask Deputy Prime Minister Kittiratt Na-Ranong to have a meeting with the private sector to seek a clear direction and policy for economic and industrial development.
The FTI intends to propose four strategies to develop the Thai industry: maintain support for strong industries; focus on agro-based industries to increase their contribution to the country's gross domestic product to 20 per cent from 9 per cent currently; strengthen the tourism industry; and make Thailand a hub for trading in Asean.
