Industrial confidence down for fifth month, FTI finds

Payungsak Chartsutipol, chairman of the Federation of Thai Industries (FTI), which conducted the survey to compile the index, said the figure reflected the poor state of business operators’ confidence, influenced by rises in raw-material prices, wages and electricity charges. Export-oriented manufacturers also suffered from weak demand overseas.
“The private sector is now asking for a delay in the [increase of the] fuel tariff [on electricity]. The government should keep power prices under control, to help reduce production costs.
They also want the government to address the labour shortage,” he said.
The October index stood at 93.0, down from 94.1 in September. The FTI survey covered 1,153 operators in 42 industrial groups.
For the confidence index of exported-oriented business alone, the index stood at 83.4, down from 90.3 in September, after declining purchase orders and revenue.
The indices of industrial operators in all regions were below the baseline of 100, indicating weak confidence. The Northeast was lowest at 85.6, down from 87.7 in September, reflecting worries of drought that could hit agricultural production, and consequently a shortage of raw materials for production of processed agricultural products.
The confidence-forecast index for the next three months is 101.8, down from 103.5 in September.
The October survey also found higher concern on the impacts of the global economy and local political uncertainties.
Industrial operators proposed that the government postpone the fuel-tariff increase, solve labour shortages, cut import tariffs on raw materials and machinery, and strengthen the logistics system.