BANGKOK, 18 September 2014 – The industrial sector confidence index has declined for the first time in four months due to slowing consumption and floods.
Federation of Thai Industries (FTI) chairman Suphan Mongkhonsuthi said that the index dropped to 88.7 in August, down from 89.7 the month before. The decline was attributed to a slowdown in consumption of electrical appliances, farm machinery and automobiles. According to Mr. Suphan, the slowdowns were triggered by the ending of the first car buyers’ scheme, the tumbling agricultural goods prices and state budget disbursements falling short of target. The floods in many localities also disrupted economic activities and presented a hurdle to transportation of goods.
Mr. Suphan indicated, however, that business operators believe the government will be able to drive the economy more concretely by pushing through its economic policies. He also said the FTI would like to see speed-ups in government investment in various projects, adjustment of loan guarantee requirements aimed at helping SMEs secure funding sources, issuance of measures against importation of low-quality products and the development of workers’ capability.