BOT expects new low in November confidence survey
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The Bank of Thailand expects that its survey will show that business confidence fell further in November because of the severe flood damage before recovering slightly this month.
“Business sentiment was not good in November,” Mathee Supapongse, senior director for macroeconomic and monetary policy, told a media briefing.
Seven industrial estates housing thousands of factories were submerged last month.
In the central bank’s October survey, the business sentiment index plunged to 36.7, the lowest since 34.4 in November 2008, from 48.5 in September. A reading below 50 indicates a loss of business confidence.
The index takes into consideration production, order books, investment, production cost, performance and employment.
Besides factories, houses and individuals suffered tremendously in the calamity.
“It won’t be surprising if the economic figures for November are not good,” Mathee said.
Concerns remain over the resumption of both production and services and also the government’s flood-prevention policy, which he said was still unclear.
Quick recovery and private consumption could be seen this month and the first quarter of next year, boosted by the government’s policy and business restoration.
The economy is expected to recover in the first quarter and return to normal late in the second, he said.
Despite the flood impacts, the shortage of workers remains the biggest headache for businesses. If the minimum daily wage is set to be even across the country in the future, businesses are worried that their workers could go back to their home towns to look for jobs with equal pay, Mathee said.
