Sentiment rises, more help urged for SMEs
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Firms stress need for political stability
Most industrial operators want the government to give more support to small and medium-sized enterprises (SMEs) in terms of their accessing capital to boost liquidity and their trade with neighbouring countries, according to a survey by the Federation of Thai Industries.
The majority also stress the need for local political stability to be maintained.
FTI chairman Payungsak Chartsutipol said yesterday that the federation’s industrial sentiment index had risen last month to 94.3 points from 92.9 in April, its first increase for four months, thanks to companies’ fading concerns over the baht situation, and the prospect of rising consumer spending.
This followed last month’s 25-basis-points cut in the policy interest rate to 2.5 per cent by the Bank of Thailand.
He said operators wanted to see more stability in the baht’s movement. They said they would benefit if the unit were to stay between 30 and 31 against the US dollar.
Industrial firms also believe the export sector will grow between 5 per cent 6 per cent this year.
The FTI conducted the survey on 1,042 operators across 42 industries.
The index of industrial operators relying heavily on the local market, such as those in the construction-materials sector, inched up to 95.1 points in May from 94.1 the previous month, due to rising orders.
The index of businesses in the export sector surged to 89.5 points from 85.7, due to rising sales and orders.
The index for the next three months increased to 100.4 points from 99.1, thanks to firms’ confidence about new orders and better financial performance, indicating that their confidence level was returning to normal, Payungsak said.
However, he added that industrialists’ worries last month included the global economic situation and local political stability, both of which could affect their businesses.
Auto sales down
In a separate matter, car sales last month plummeted 3.7 per cent from the same period a year ago, as the government’s first-car buyer programme lost its influence on the market.
Surapong Tovichakchaikul, deputy chairman and spokesman for the Automotive Industry Club at the FTI, yesterday said automobile production in May had come in at 231,070 vehicles, increasing 11.09 per cent year on year and 35.56 per cent from April. Passenger cars accounted for 100,182 vehicles, up 22.71 per cent year on year.
Auto production in the first five months of the year was around 1.12 million vehicles, up 31.73 per cent year on year.
Passenger-car output was 80.58 per cent higher than in May last year at 495,672 vehicles, or 44.13 per cent of overall production.
Production for export was 445,164 vehicles, for 39.64 per cent of overall output and 17.19 per cent higher year on year.
Production for the domestic market in May was 141,032 vehicles, accounting for 61.03 per cent of overall volume and 23.98 per cent higher than a year ago.
In the first five months, production for domestic use was 677,866 vehicles, or 60.36 per cent of overall production. Output increased 43.41 per cent year on year because of bookings under the first-car buyer scheme.
Domestic sales volume last month was 111,692 vehicles, decreasing by 3.7 per cent year on year but up 1.84 per cent from April. The month-on-month rise was down to there being more working days in May and the fact that the delivery of vehicles under the government’s first-car programme was gradually completed.
The Automotive Industry Club forecasts that auto production from June to August will come in at 625,246 vehicles, 4.95 per cent lower than in the March-May period and 2.07 per cent lower than in the same three months last year.
Production of motorcycles from June to August is expected to total 591,846 units, down 1.8 per cent from the prior three months and 14.68 per cent lower year on year.
