Payungsak Chartsutipol, chairman of the Federation of Thai Industries (FTI), said the higher TISI is attributed to purchase and sales orders, production volume, capital cost and financial performance.
He did, however, point out that a TISI below 100 reflects an unsatisfactory level of manufacturers’ confidence.
The index on purchase and sales orders was above 100 which showed industrialists’ confidence on expanded demand in various sectors including automotive, construction, food, electrical appliances, electronics and energy, Payungsak said.
He said the TISI is forecast to reach 99.6 in the next three months.
The export index improved in November thanks to increased orders from overseas for the holiday season while negative factors which impacted manufacturers’ confidence were the global economic situation, domestic political uncertainty, higher production cost due to increased expense on raw materials, energy and the minimum wage increase to Bt300/day from Jan 1, the FTI chairman said.
Thai industrialists urged the government in November to enhance cooperation with neighboring countries to pave the way for small- and medium-enterprises (SMEs) in Thailand to increase export and service to those countries before the ASEAN Economic Community materializes in 2015, he said.
Thai SMEs which will be severely affected by the Bt300 minimum wage implementation need urgent assistance to stay competitive in the market while the government should develop skilled labor to cope with more sophisticated industrial production, he said.