Industry confidence at new low
- Published: 17/10/2013 at 11:58 AM
- Online news:
The Thai industries sentiment index (TISI) for September dropped from 91.3 in August to its lowest level in 23 months at 90.4, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Thursday.
Industry confidence has now been below the 100 level for 15 months in a row as manufacturers were concerned about the impact of the floods in many provinces that are affecting production and transportation, Mr Payungsak said.
They also were worried about global and domestic economies and the continuing political conflict.
He said the fact the TISI is still below 100 shows there is low confidence in the industry sector overall.
Industry confidence for the next three months increased from 98.1 in August to stand at 100.5 on the expectation that orders, overall sales volume, production output and business performance would improve by the end of the year, said the FTI chief.
Risk factors that could hurt manufacturers’ business over the next three months included political uncertainty and the possible fluctuation in foreign exchange rates. The impact of oil prices, global recession and high loan rates were of less concern for business operators in September, he said.
Mr Payungsak said the government should help find funding sources to provide low interest loans to help flood-affected manufacturers recover, and oversee the baht to prevent it from fluctuating too much.
In addition, the government should implement additional stimulus measures to boost domestic consumption and private investment, and keep fuel and electricity charges at suitable levels as they are key production costs.
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- Writer: Online Reporters
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