Confidence in the industrial sector increased for the fourth straight month in December to the highest level in 22 months, according to the latest survey by the Federation of Thai Industries (FTI)
FTI chairman Chen Namchaisiri said the confidence index rose to 88.5 points in December, up from 87.6 in November, bolstered by rising purchase orders and improved production before the end of 2016.
The 1,170 respondents from 45 groups of industries expressed greater confidence after the government introduced tax measures to stimulate domestic consumption, coupled with several promotion campaigns organised by industries such as electrical appliances, fashion, food and automobiles.
Mr Chen said negative factors affecting confidence were the extended rains that caused flooding and logistics problems. The floods caused shortfalls in rubber, palm oil and rubber wood processing.
However, the confidence index for the next three months dropped to 100.0 in December, down from 102.0 in November, as industries were still worried about prices of raw materials, the increase in wages and oil prices, fluctuation of the exchange rate and the global economic situation.