Posted on 27 Aug 2014
The industrial confidence index continued
to rise for the third consecutive month in July, to 89.7 from 88.4 in the
previous month, according to the Federation of Thai Industries.
Chairman Supant Mongkolsuthree attributed
the optimism to more stable politics as evidenced by higher domestic orders
received by small and medium-sized enterprises although some industries saw
seasonal declines.
Operators were keen about border trade,
plans for special economic zones and the focus on production-cost cuts to
improve competitiveness.
Their concern revolved around the European
Union's decision to cut GSP to which they responded by adjusting themselves to
cope with more intense competition.
Overall, operators were less concerned
about the world economy, world oil prices and local political situation but
they were more worried about foreign exchange rates. Lending interest rates
were steady.
"The operators wanted the government
to set a clear direction and economy policy to bolster investors' confidence.
They also would like to see accelerated budget disbursements to help stimulate
the economy, more cooperation with neighbouring countries to facilitate
movements of goods, manufacturing factors and labour for border trade, and
state-sponsored research and development budgets for SMEs," he said.
Surapong Paisitpattanapong, spokesman for
the Federation of Thai Industries (FTI)'s automotive industry club, said
automobile production plummeted 24.89% to 151,000 units in July, bringing total
production in the first seven months of the year to 1.1 million units, down
28.46%.
The major factor continued to be the end of
the first-time car buyer programme.
Auto sales stood at 69,200 units, down
29.5% year-on-year and 6.14% on month, bringing total sales in the first seven
months of the year to 510,000 units, down 39.2%.
Auto exports, however, continued to show
growth in July, at 91,700 units, up 8.92%. By value, the shipments rose 9.73%
to 43.7 billion baht. When combined exports of engines, components and parts,
the value increased 4.6% to 63.90 billion baht.
For the first seven months of the year,
auto exports rose 4.31% to 651,000 units or 308 billion baht, up 9.01%. With
engines, components and parts, the shipments totalled 456 billion baht, up
9.33%.
