BANGKOK, 17 May 2013 – Industrial Confidence Index in April dropped a notch from that of the previous month; the drop is attributed to the appreciation of the Thai baht against other currencies.
According to Federation of Thai Industries (FTI) President Payungsak Chartsutipol, the Industrial Confidence Index in the month of April dropped to 92.9, 0.6 , a fraction lower than the previous month’s of 93.5. It is the fourth consecutive month that the industrial sector has seen a decrease in its confidence index.
The reason behind the drop is attributed to the fluctuation of the Thai currency, which has caused Thai and foreign entrepreneurs to be uncertain of the situation. Combined with the global economic volatility, the continued baht appreciation has made it difficult for Thai exporters to take orders from foreign countries.
He further disclosed that the appreciation has prompted Thai entrepreneurs to switch to importing raw materials from other countries as they are now cheaper than domestic products; thus affecting the country’s supply chains which are part of the upstream industry.