InfoQuest (March 21, 2019) -- Mr. Suphan Mongkolsuthree, chairman of the Federation of Thai Industries, released the results of Thai Industries Sentiment Index for February 2019. The index was 95.6, slightly higher than the 93.8 of January 2019. That can be explained by the increase of the index components, including the total order volume, total sales, production, operating costs, and business volume.
The increase of the index in February is mainly because of the increase of domestic demands, which can also be reflected by the Thai Industries Sentiment Index of manufacturing, food & beverage, construction, and auto at home. Other boosting factors included large-scale investment in government projects, and election campaign. All these have boosted domestic consumption, especially for auto, food & beverage, publishing, and other sectors.
But exporters still worry that the fluctuation of baht would affect their plan formulation and pricing. The export decline, caused by the economic conditions of trading partner countries, can be reflected by the decreasing foreign orders and sales.
Meanwhile, it is expected that in the coming three months, the index will be 105.4, slightly higher than 104.1 in January 2019. That is because enterprises reckon that after the election and the establishment of new government, economic policies would be defined, which will drive economic growth in the second half of 2019.
"The index of February represents the highest since February 2013. Driven by the election, it will show a rising trend in the next three months," said Mr. Suphan.
Enterprises have proposed three suggestions to the government: first, government should formulate specific measures to support Thai industries in adjusting and enhancing competitive edges in the era of "disruptive technology"; second, the government should promote and support the innovation of SMEs across the country; Third, for countries with which Thailand has not signed trade agreements (such as Eurozone, Middle East, Africa, and Eurasia), the government should sign FTA with them.
To compile the Thai Industries Sentiment Index of February 2019, a total of 1,162 enterprises of 45 industries were surveyed. 28.8 percent of them are small-sized enterprise, 36.9 percent are middle-sized enterprises, and 34.3 percent large-sized ones. 36.0 percent of them come from central region, 15.4 percent come from the north, 13.9 percent the northeast, 23.1 percent the east, and 11.6 percent the south. Grouped by sector, 79.4 percent of them focus on domestic market, and 20.6 percent have major presence in international market.
Source: InfoQuest, by Nisarat Wichiensri / Ratchada, translated by Xinhua Silk Road
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