Posted on 19 Sep 2014
The Industrial Confidence Index in August dropped for the first time in four months, with manufacturers worried about the slowdown in domestic consumption, sales and purchase orders.
The index fell to 88.7 points in August, from 89.7 points in July, the Federation of Thai Industries (FTI) reported after a survey of 1,064 operators in 42 industrial sectors.
Suphan Mongkolsuthee, FTI president, said respondents were concerned about low domestic consumption as reflected by fewer purchase orders and sales since July, particularly in durable goods such as automobiles, electrical appliances, air conditioners, television sets and farm machinery. Floods in some provinces also added difficulties for transportation and disrupted other economic activities.
Manufacturers were confident the new government will be able to implement policies and measures that will effectively drive the country’s economy, he said.
The FTI president suggested the government speed up investment in infrastructure to stimulate the economy and bring in measures to assist small and medium enterprises to raise needed loans.
However, the Commerce Ministry announced its own survey showed that consumer confidence rose in August to stand at 44.0 points, up from 41.4 points, and said it was the third consecutive month it went up.
The director general of the Office of Trade Policy and Strategy, Ampawan Pichalai, said the ministry's review put the confidence in August at it highest in almost 10 years. It was still lower than the benchmark of 50 points, she admitted.
She said this shows that consumers still have no real confidence in the economy but expected that the situation will improve in the future.
Ms Ampawan said the reduction in pump prices for fuel also helped reduce household spending, but that overall people were still worried about living costs, falling farm prices - especially longan and rubber - and the flooding in some areas.
