The Magazine for Asian Investors
The Federation of Thai Industries (FTI) announced that the industry confidence index was 89.0 in July, up from 86.3 in June, marking the second consecutive month of improvement.
The positive factor was the expansion of the manufacturing sector as a result of increased demand for industrial products. This applied to both consumer durables and consumer goods on the domestic market and on the export market, which was further expanded in particular by important trading partners such as the U.S., China, Japan and India.
The easing of lockdowns in key Chinese cities has had a positive impact on Thailand’s export sector. In addition, the devaluation of the baht has had a positive impact on the tourism and export sectors. Consequently, this is having a positive impact on purchasing power in the region.
Confidence in operating costs declined as commodity prices, energy prices and transportation costs remained stable at high levels. Even the world oil price gradually declined in July, while inflation continues to put pressure on people’s purchasing power.
In addition, the confidence of industries related to the construction sector has slowed down due to the rainy season in the country.