The confidence of Thai business leaders remains well below the level seen before the floods in late 2011, according to the Grant Thornton International Business Report.While business optimism rose to a net 22% in this year's second quarter, up from 14% in the first quarter, this was well below the levels seen in the first three quarters of 2011 when optimism averaged 42%. Since then, quarterly optimism has averaged just 16%.
Optimism has been more measured because of the initial effects of the floods, the neutral performance of major world economies and trading partners, and worrying domestic developments such as the effects of the rice pledging scheme on the economy, rising household debt and the fear of a lack of transparency in mega infrastructure projects.
Businesses are also less confident about growth in their operations. Only 28% expect revenue to grow, while 28% see profits climbing over the next 12 months, but this compares with 56% and 52% respectively in the same quarter of 2011.
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