Infoquest (March 3, 2020) -- The business confidence index for February 2020 was 44.1, down from 48.5 in the previous month, hitting the lowest level since the flooding in 2011. And the index in manufacturing and non-manufacturing sector both experienced a decline, according to the Bank of Thailand (BOT). In manufacturing, the confidence in production, order, revenue and performance all dipped. In particular, the electronic components and electrical appliances industries, which are heavily dependent on raw materials imported from China, fail to keep the current raw material stock to meet the demand, leading to a decline in confidence in production and performance.
At the same time, the confidence in non-manufacturing sector fell sharply this month. This is mainly due to a confidence drop in domestic and foreign bookings and service availability in tourism-related businesses, including transportation, accommodation and catering which was hit by the outbreak of the novel coronavirus (COVID-19).
The BOT estimates that the business confidence index will fall to 50.5 over the next three months.This reflects concerns that businesses will continue to be affected by the COVID-19 for some time to come, particularly the transport sector, which is expecting lower bookings in the future, while electronics manufacturers worry that orders from China will shrink.
Confidence among carmakers will also fall, mainly because shortages of raw materials could worsen if the outbreak remains unchecked.
Source: InfoQuest, by Kasamarporn Kittisamphan/ Rachada, translated by Xinhua Silk Road.
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