BANGKOK, July 24 – The FTI revealed the industrial confidence index in June, the highest increase in three months, driven by the tourism sector. Recommend additional flights But the 3-month expectation index is expected to decrease due to many factors. There are also concerns about water shortages in the industrial and agricultural sectors. Proposes the government to prepare for El Niño conditions
Mr. Kriangkrai Thiennukul, President of the Federation of Thai Industries (FTI) and Mr. Montri Mahapruekphong, Vice Chairman of the Federation of Thai Industries (FTI), jointly announced the survey results of the Industrial Confidence Index in June 2023 at 94.1, an increase from 92.5 in May. Increased for the first time in 3 months.
Mr. Montri mentioned that all components of the index increased, including the index, total orders, total sales, production volumes. tons of operating capital and operating results The supporting factor is the expansion of domestic demand. Both private consumption and tourism sector
while the construction sector expanded, especially real estate and government projects. In addition, the depreciation of the baht and lower freight rates helped support the export sector.
However, entrepreneurs are still concerned about the household debt problem that puts pressure on domestic purchasing power. while the export sector continues to slow down Due to weak demand in the world market, especially the United States, Japan, ASEAN and Europe. as well as world geopolitical conflicts In particular, the Russian-Ukrainian war also pressured world energy prices and commodity prices. The prospect of US interest rate hikes remains a risk to the global economy.
The three-month forecast for the index was 102.1, down from 104.3 in May. This is because entrepreneurs are concerned about the political situation and the clarity in forming a government. as well as the global economic slowdown and the uncertainty of the Chinese economy affecting the export sector. Including the drought crisis caused by the El Niño phenomenon, affecting the agricultural and industrial sectors.
Mr. Kriangkrai mentioned the FTI's recommendations to the government sector to promote confidence in the industry as follows:
1) Ask the government to consider reducing electricity prices for the 3rd period of 2023 (September - December 2023) down to 4.25 baht/unit in order to help reduce production costs for entrepreneurs and alleviate the impact of the slowing economy.
2) Propose to the government to increase flights and travel facilitation for tourists. with an emphasis on safety as well as promoting and giving opportunities to Thai entrepreneurs to promote Thai products to foreign tourists through various activities To help support industrial products related to the tourism industry.
3) Suggest that the government prepare measures to deal with the drought situation caused by the El Niño phenomenon. Including having adequate water management plans for the agricultural and industrial sectors
4) Ask the government to take care of and mitigate the impact of product prices and the cost of living that are still high.
In this regard, FTI has gathered information from survey results of industry sentiment index and data from economic and industrial indicators from various agencies for the past 3 years to create a Dashboard to be published on the Industry Data Space (IDS) website of FTI in order to facilitate entrepreneurs and the general public to access useful information in business operations. which can access such information services at www.fti.or.th/idsStronger Thailand). – Thai News Agency
Source: Thai News Agency