The Federation of Thai Industries (FTI) chairman said the April 2022 industry confidence index was 86.2, down from 89.2 in March. The index fell to its lowest level in five months.
Among the factors affecting the confidence of industrial companies is the concern about rising production costs. They include raw material prices as well as energy prices and transportation costs.
At the same time, domestic purchasing power declined due to inflation and household debt. As a result, people held back on spending and domestic demand declined. In addition, vacations during the Songkran festival curbed production.
The escalating conflict between Russia and Ukraine affects the global trading economy and impacts the prices of imported products such as raw materials, chemical fertilizers, and metal products.
However, the shortage of containers remains unresolved, and the space on board ships is insufficient to meet export demand. The delay of transport ships is also a factor putting pressure on the export sector.
Moreover, the weakest baht factor in 5 years will increase the competitiveness of exporters. Of concern, however, is that the weak baht will drive up the cost of importing goods and commodities, especially oil products, which may further accelerate inflation.