Industrial confidence index climbs in March

Thailand’s industrial confidence index in March climbed to 69.4 from 63 in February due to an increase in purchase orders and an greater production of products on the eve of the Songkran festival, according to a survey by the Federation of Thai Industries (FTI).

FTI chairman Santi Vilassadanont said the survey was conducted using a random sample of 1,189 operators in 39 industrial groups before the political violence which was witnessed in Pattaya and Bangkok.

It showed that the index rose last month since manufacturers wanted higher production to compensate the projected lower production and distribution in April due to the long Songkran holiday.

The survey found entrepreneurs in the industrial sector had improved efficiency in cost control, reducing overhead and more efficient management for their commercial survival.

The index is expected to increase from 73 in February to reach 75.1 over the next three months because the entrepreneurs believed the government’s economic stimulus measures would help boost the local consumption to a certain extent.

In addition, there were reduced inventories of products in stock due to greater demand both domestically and abroad.

However, the entrepreneurs remained concerned over the industrial outlook because the local and overseas economies are still sluggish and the political risk factor in the country seems to escalate.

Mr. Santi said most entrepreneurs wanted the government to quickly achieve political stability to draw in more investors and promote commercial banks to issue more loans to industrial business operators.

The government should also relax loan regulations to boost the liquidity of the industrial sector, reduce import tariffs, and prevent the dumping of low-priced imported goods, he said. (TNA)

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