Industrial Confidence Index in Thailand continues to decline for the third month due to manufacturing slowdown, reduced domestic purchasing power, and global economic outlook. FTI suggests measures to counter the downturn and prepares for FIC 2023 event.
Industrial Confidence Index in Thailand Continues to Decline
Thailand’s Industrial Confidence Index has fallen for the third month in a row due to a slowdown in manufacturing. The Industrial Confidence Index in Thailand has experienced its third consecutive monthly decline, dropping to 90.0 in September from 91.3 in August, as reported by the Federation of Thai Industries (FTI). This decrease can be attributed to factors such as a slowdown in the manufacturing sector, reduced domestic purchasing power, and a sluggish global economic outlook.
Factors Contributing to the Decline
According to Kriengkrai Theinnukul, Chairman of the FTI, the decline in the index is linked to various factors. These factors include lower household debt, decreased agricultural income, and weakened demand from trade partners, especially China. Entrepreneurs are also facing financial challenges due to the Bank of Thailand’s (BOT) policy rate hike.
FTI’s Recommendations and Upcoming Events
The FTI has offered three key recommendations to counter the economic downturn. These suggestions include minimizing the interest rate gap between deposits and loans, expediting the creation of a “Virtual Bank,” and intensifying efforts to prevent the import of substandard products. The federation also suggests promoting renewable energy trading through incentives for excess electricity purchases through the Net Metering system. Additionally, the FTI is preparing for the FIC 2023 Event, set to occur on November 1st. With the theme of “Reformation of Thai Economy Amidst Polycrisis,” the event will facilitate business discussions between public and private sectors from Thailand and abroad. Esteemed government officials, including Prime Minister Srettha Thavisin, alongside diplomats and foreign investors, will participate in the event. Source: National News Bureau of Thailand.