Industry confidence hits two-year low

The Thai Industries Sentiment Index (TISI) fell to its lowest level for two years in November, chairman of the Federation of Thai Industries (FTI) Payungsak Chartsuthipol said on Thursday.

The index dropped from 92.8 in October to 90.3 in November, the chairman said, its lowest point since 2011.The FTI conducted an industry confidence survey of 1,023 manufacturers in 42 industrial groups in November.

Mr Payungsak attributed the decline in industry confidence to manufacturers’ concerns over the current political turmoil. He warned political problems are likely to be prolonged, damaging the economy and weakening the country’s purchasing power.

Companies are experiencing a drop in overall domestic orders and sales volume, he said, adding that manufacturers want all sides to work together to end the ongoing political conflict as soon as possible.

Mr Payungsak said industry confidence for the next three months stood at 101.4, down from 102.4 in October on back of the declining in orders, sales volume, output and poor business performance.

Manufacturers are most concerned about political problems, but are also worried about fluctuations in oil prices, foreign exchange and loan rates, he added.

The FTI chief said their survey found that manufacturers want the government to work to settle ongoing political disputes, stabilise the value of the baht, take action to tackle corruption, encourage state-owned financial institutions to provide low-interest loans to small and medium enterprises and help manufacturers improve production standards to international levels.

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