InfoQuest, (April 22, 2019) --The industry confidence index in March rose to 96.3 from 95.6 in February, according to Suphan Mongkolsuthree, chairman of the Federation of Thai Industries (FTI). This is the third month showing a rise in the confidence index, with increasing value of orders, consumption, production, and turnovers.
Driven by domestic consumption and a promotion campaign by producers, the industry confidence index keeps climbing. Sales and purchase orders of durable and nondurable sectors showed a growing trend, for example, in auto, construction, and printing sectors. In addition, manufacturers accelerated production to make up for the gap caused by in Songkran Festival in April, which resulted in an increase in output index and Capital Utilization Rate (CAPU) over the previous month.
Industry owners have continuing concerns about the country’s politics after the election, hoping the new government will be formed as soon as possible so as to boost trade and investment confidence. In addition, there are also external influencing factors, including the global economic slowdown and the rise in oil prices in the world market caused by international political conflicts. Therefore, entrepreneurs believe that domestic consumption and economic stimulus measures formulated by the government will become important factors affecting Thailand's economic growth.
The industry confidence index for the next three months is likely to drop to 104.2 from the 105.4 forecast in February this year, which is mainly due to concerns about the slowdown in major trade partners and the influence of increased minimum wages on the production cost of small and medium-sized enterprises (SMEs).
At present, the government is suggested to formulate measures to stimulate domestic consumption to fuel private consumption and economic expansion.
Source: InfoQuest, by Nisarat Wichiensri/ Kasamarporn / Rachada, translated by Xinhua Silk Road
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