BANGKOK,(NNT) – The nation’s industrial confidence index decreased for a second month in February due to the continued belief that the baht is appreciating currently in spite of the fact domestic auto sales were up 19.9 percent year-on-year.
Federation of Thai Industries (FTI) President Chen Namchaisiri has revealed a survey of industrial confidence for February yielded a figure of 86.2 percent, down from 87.2 the month prior and lower year-on-year for a second month. He attributed the continued decline to reduced spending power in the country as the state stimulus provisions have come to an end, as well as concerns over the appreciating baht, which has begun to outpace other currencies in the region.
Small and medium enterprises have continued to voice worry over production costs but exporters have indicated confidence in recovery for their sector this year.
The industrial confidence outlook for the next 3 months is up slightly from a prior estimate of 100.4 as exports are expected to fare better and government investment is slated to return.
Auto sales in February were 68,435 units domestically, up 19.9 percent from the same month last year and 19.5 percent from the previous month, together signaling recovery for the industry.
In April and May, the industrial segment is poised to cut work in order to save energy in line with a Ministry of Energy request based on an expected hike in demand during the summer peak.