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Thailand’s March Business Confidence Index Rises, but Cost Confidence in Manufacturing Drops

The Bank of Thailand (BOT) released the business confidence index for March 2022, which rose to 50.7, remaining above 50 for the first time in a year, as confidence increased in almost all businesses. Confidence in the manufacturing sector increased, led by electronics manufacturers.

Confidence has also increased in sectors other than manufacturing. In particular, hotel and restaurant chains have risen above the 50 mark for the first time since the COVID 19 outbreak, with confidence in operating results increasing sharply. This is consistent with the government’s continued relaxation of control measures.

However, sanctions against Russia have driven up energy and raw material prices for natural ores such as iron and aluminum. This is putting pressure on operators’ cost confidence, which has fallen dramatically to its lowest level since 2008, exacerbating the problem of semiconductor shortages and existing supply problems. Especially in the automotive group, the steel production group, and the construction, and real estate group, cost confidence has fallen to a record low.

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