Thai industrial sentiment rises in October
The latest survey of 1,144 Thai firms shows that the Thai Industries Sentiment Index (TISI) for October 2014 improved to 87.5 from 86.1 in September due to higher overall purchase orders, sales, production output and companies' operations results.
According to the president of the Federation of Thai Industries (FTI), Supant Mongkholsuthee, the survey covered small-scale industry 25.9 per cent, medium-sized industry 43.7 per cent, and 30.4 per cent of large-scale operations. It covered 42 industrial sectors nationwide – 49.4 per cent in the the central region, 11.9 per cent in the northern, 12 per cent in the Northeast, 11.5 per cent eastern and 15.2 per cent from the South. As 82.9 per cent of total is domestic-oriented industries, the rest 17.1 per cent is export-oriented industries.
The improved TISI figure in October was attributed to higher purchase orders for garments, foods, electrical and electronics goods, telecommunication goods and rising border trade volume with neighbouring countries amid continuing fall in the world oil prices. Despite the improved industrial sentiment, most business operators are still concerned over the Thai economic recovery. They believe growth could be accelerated with state budget disbursement and investment to stimulate the economy and boost private sector confidence to make more investments.
Next quarter
The TISI figure for the next quarter is projected at 105.7, up from 104.7 in September, due to expected higher purchase orders, sales, production output, operating costs and operations results. The TISI figures for small, medium and large-scale industries improved in October relative to September this year.
The TISI figures for all regions of Thailand last month were an improvement over that of September.
The TISI figures for both import and export-oriented Thai industries improved last month over September.
Factors that could affect the operations of Thai industries in October were: global economy, the oil price, foreign exchange, domestic political situation and loan rates which was stable relative to September.
The business operators urged the government to accelerate state budget disbursement to boost the economy. They also called for support to upgrade production technology to produce more value-added products in order to boost Thai industrial competitiveness.
