Thailand’s business confidence index plummets

 Signs showed that confidence had deteriorated in both manufacturing and non-manufacturing sectors from all aspects, as indicated by the below-50 threshold, the Bank of Thailand (BOT) report released on Tuesday (May 5) showed. 

Meanwhile, the expected BSI for the first quarter of the year dropped to 37.8 due to concerns over a severe and prolonged Covid-19 crisis. In April, the BSI sharply fell from 42.6 in March to 32.6, the lowest level ever recorded since 1999, when the index was born. 
All components came in below the 50-threshold, showing that sentiment has declined in all sectors due to the pandemic. 
In the manufacturing sector, confidence in production, orders and performance was considerably low, especially in machinery, equipment and automotive sectors. Declining confidence in the non-manufacturing sector was caused by the vulnerability of retail businesses, the hospitality and restaurant industry, and the logistics sector due to economic activities coming to a halt in order to curb the contagion. 
The expected BSI over three months plummeted to 37.8, close to the 37.1 recorded during the 2008 global financial crisis, owing to concerns over a protracted and serious Covid-19 situation. 

With a massive drop in confidence in the manufacturing industry, investment and employment sub-indices also plunged, which may imply future job losses. 
In the non-manufacturing sector, the sub-indices of retail and logistics sectors considerably dropped due to expected economic slowdown, as well as panic buying and hoarding before the lockdown. Also, respondents in the construction sector reported a pessimistic outlook in investment and construction volume, thereby weakening their confidence in employment.