Thailand’s industrial confidence index continued to rise in august

The Federation of Thai Industries (FTI) announced that the industry confidence index rose to 90.5 in August from 89.0 in July, marking the third consecutive month of improvement.

The main domestic supporting factors are various economic activities returning to normal after the Covid-19 situation improved and the government eased the COVID-19 control measures. Consequently, domestic consumption had a better direction, reflecting the continued expansion of demand for industrial products.

However, there are still negative factors arising from the global economic slowdown, especially in the economies of major trading partners such as the US and Europe, which are struggling with inflation. The conflict between Russia and Ukraine remains uncertain, as does the shortage of chips, which is affecting the production of electronic products. Electronic products and certain automobiles are a negative factor for Thailand’s export sector.

In addition, entrepreneurs are also concerned about rising production costs. Prices for raw materials, feed, steel and aluminum as well as electricity costs and logistics costs have stabilized at a high level. Although the cost of oil prices improved in August, as did the shortage of foreign labor in the manufacturing sector.

The forecast for the next three months is 99.5, up from 98.7 in July, as economists see a tendency for the Thai economy to grow slowly.

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