InfoQuest (July 18, 2019) -- Mr. Suphan Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), revealed that in June 2019, industry sentiment index dropped to 94.5 from 95.9 in May, with decline in overall number of orders, overall sales revenue, overall output, operation cost, and operation performance.
The decline was mainly caused by such factors: entrepreneurs worried that the postponement of establishing a government may slow down the implementation of government policies and budgetary expenditure, and then affect domestic investment and consumption; as baht was stronger than currencies of other ASEAN countries, importers asked to reduce product price. These factors have harmed the price competitiveness of export divisions, especially products featuring domestic raw materials.
There were also external risks such as global economic slowdown, the protracted trade war, and international political conflicts. Besides dented confidence of entrepreneurs, many economic agencies have lowered expectations on economic growth in 2019.
Caused by worries over domestic purchasing power, especially that at local level, industry sentiment index in the coming three months has dropped from 102.9 in May to 101.3. The new government should release stimulus measures as soon as possible, boost domestic consumption and expenditure, and accelerate budget appropriation, so as to propel economy in the latter half of this year.
Private sector had suggested the government to take measures to prevent a stronger baht than the currencies of its trading partners, in a way to enhance the export competitiveness of Thailand; meanwhile, efforts can be made to lower policy rate to slow down foreign capital inflow, said the chairman.
Source: InfoQuest, by Tanawat Suayaem / Kasamarporn / Rachada, translated by Xinhua Silk Road
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