Industries Sentiment Index rises in December

The index increased from 87.5 in November to 93.7 last month. However, the index is still lower than 100, which indicates low confidence, as it has been for four consecutive months.

FTI chairman Payungsak Chartsutipol said manufacturers had resumed trading and manufacturing after the massive flood receded. In particular, auto-makers have restarted manufacturing after the transport system has recovered its ability to facilitate logistics and supply chains.

However, manufacturers are most worried about the global economy downturn, followed by oil prices, political uncertainty, interest rates and exchange rates.

They also shared the view that the government should find ways to enhance the economy in the aftermath of the flood. Moreover, it should delay its plan to raise the minimum wage to Bt300 per day as well as the energy-price adjustments for the industrial sector.

Surapong Paisithpatanapong, spokesman for the Auto Industry Club under the FTI, said car exports jumped 50 per cent to 35,046 units in December. However, total value plunged by 42.93 per cent to Bt17.04 billion compared with the same month in 2010. In addition, the value of parts exports dropped by 27.95 per cent to Bt32.76 billion.

The FTI also reported total car export grew 17.89 per cent to 735,627 units worth Bt343.38 billion, down by 15.14 per cent last year.

The FTI reported that car sales in the domestic market skyrocketed by 109.35 per cent to 54,575 units in December when compared with November. However, that volume was down by 41.4 per cent year on year.