InfoQuest (January 2, 2020) -- Thai business confidence index in December 2019 was 45.1 points, lower than that in the previous month, and in the manufacturing sector the indicator has been below 50 points for nine straight months and nearly all components experienced a decline, reflecting continued confidence weakness across the sector. In particular, manufacturers of electrical appliances and equipment and food and beverage saw a sharp drop in order confidence. As a result, confidence in production and revenue fell, according to the Bank of Thailand (BOT).
The non-manufacturing business confidence also declined, with wholesale and retail sales falling the most, and confidence in turnover, orders and revenues all fell, reflecting concerns about domestic purchasing power. In the real estate sector, the confidence of housing starts saw the most pronounced decline.
The BOT estimates that the business confidence index for the next three months will fall slightly from the previous month to 52.0 points. On an optimistic note, the decline will be mainly in the non-manufacturing sectors of retail and wholesale, where confidence in orders and turnover will drop sharply. The decline will be attributed partly to the situation that the next phase of stimulus package has yet to be clear.
However, the business confidence index in manufacturing will climb in the next phase. Chemical and petroleum products manufacturers will see the biggest gains, and the confidence of electronics manufacturers in order and revenue will also register significant increases.
Source: InfoQuest, by Kasamarporn Kittisamphan / Rachada, translated by Xinhua Silk Road
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