Thailand’s industrial confidence index drops in July

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BANGKOK, Aug 18 – Thailand’s industrial confidence index in July fell from 107.4 to 105.2 in the previous month as a result of several factors, according to a survey by the Federation of Thai Industries (FTI).

The survey was conducted using a random sample of 1,104 industrial operators in 40 groups of industries.

FTI Chairman Payungsak Chartsuthipol said factors affecting the lower industrial confidence index were entrepreneurs’ worries regarding higher production costs owing to higher prices of materials, the government’s policy for a of minimum wage rise to Bt300/day, continuing high energy prices, rising interest rates, the strong Thai baht currency exchange rate, and the fragile world economy.

However, the survey showed the index level was higher than 100. The figure demonstrated that industrial entrepreneurs are confident in their businesses due to the positive factor of continously increasing demand.

Classified by business size, the chairman said the confidence index for small- and medium-scale industries increased slightly from June, while large-scale operations fared opposite.

The suggestion of entrepreneurs to the government in July were on the minimum wage rise to be processed gradually, solution on lack of skillful workers as well as higher production costs, national reconciliation and political stability for the country’s improving economy.

Mr Payungsak said the expected industrial confidence index in the next three months dropped to 107.4 from 113.5 in June since industrial operators forecast total purchase, sales orders, production quantity and costs would edge down.