CEOs 'not confident' on Thai economic outlook: survey
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The latest "CEO Sentiment Index" survey, conducted last month by Krungthep Turakij newspaper and Dhurakij Pundit University's research centre, found chief executives expecting no significant upturn in economic growth amid the rising cost of living.
The survey, conducted from July 5-19, involved 414 corporate executives. CEOs’ economic index figure was at 2 points in July, on a par with that in June, and is projected to reach 5 points go up this month.
confidence level of business executives on the overall Thai economic outlook.
Five major factors affecting business operations were cited by corporate executives: of greatest concern was the current slowdown of the Thai economy, followed by weaker market demand, the sluggish global economic situation, the cost of raw materials and higher wage expenses.
The current state of the Thai economy was of most concern to the executives surveyed because, in the past six months, there were no clear economic-growth signs amid the rising cost of living and level of consumer debt, both of which weakened domestic demand.
Struggle to keep afloat
Moreover, the sluggish global economic situation means most business operators would have to struggle to maintain, if not increase, the level of their revenues and must monitor their costs of doing business more frequently in order to avoid an adverse impact on their financial liquidity.
There are four core business indices covered by the survey: revenue, cost of operations, liquidity and employment.
The “cost of operations” index continued to rise for the fourth straight month. , rising to 57 points in July and expected to reach 59 points this month.
Meanwhile, the revenue index in July fell, to 1 point in June this year that based on 100 point, and is projected not to change for August.
The steady rise in the costs index and the gradual decline of the revenue index resulted in a liquidity index figure of “negative 8 points”, which is seen as likely to improve to “negative 5 points” this month.
Meanwhile, the unemployment index in July was increase only one point compare with four point in June that based on 100 point.
It is expected to rise to 2 points in August.
