BANGKOK, Aug. 16- FTI reveals the July 2023 Industrial Confidence Index stood at 92.3, the lowest level in 10 months due to lower purchasing power, rising interest rates, and unstable politics. Urgently set up a government to fix the economy, hoping to reach 30 million tourists by the end of the year to support the economy.

Kriangkrai Thiennukul, president of the Federation of Thai Industries (FTI), revealed the survey results of the Industrial Confidence Index in July 2023 at 92.3, down from 94.1 in June. 2023 and the lowest index value in 10 months when considering the composition of the index value It was found that all components fell, including the index, total orders, total sales, production volume. operating costs and operating results This was due to a slowdown in manufacturing and product demand from the previous month. The domestic risk factor comes from the problem of household debt and the high cost of living. As a result, the purchasing power of households weakened. As a result, the demand for industrial products decreased. while interest rates are in an upward direction cause higher financial costs In addition, the political situation is unclear about the formation of the government. Affects private sector confidence. by the joint committee of 3 private sector institutions (KorKor. ) has always come out stating that a government is requested according to the timeline by August Because the timeline of the industry is used in investment plans.

As for the external risk factor, it comes from the global economy that is still fragile due to a decrease in global demand. Causing exports to slow down for the ninth consecutive month, but there is still a tourism sector that helps support the economy. Hope the end of 2023 Foreign tourists move up to 30 million to help boost domestic purchasing power While the Chinese economy grew lower than expected. However, there are still supporting factors from the expansion of the tourism sector that helps support consumption and domestic spending.

The index expects the next three months to be at 100.2, down from 102.1 in June. because entrepreneurs are concerned about the delay in forming the government This may affect government budget preparation. as well as the lack of continuity in the implementation of policies to drive the economy However, production costs tend to increase, such as energy prices, electricity costs and labor wages. is an obstacle to business operations While the global economic situation is still highly uncertain.

The industrial sector has recommendations to the government as follows:

1) Accelerate the establishment of the government and issue policies to revitalize and stimulate the economy urgently. in order to solve the problems of the people's stomach as well as to build investor confidence and stimulate domestic purchasing

power; especially SMEs entrepreneurs to enhance financial liquidity and reduce the risk of bad debt (NPL).

3) Requesting the use of trade diplomatic mechanisms in negotiating a free trade agreement (FTA) and reducing non-tariff barriers (NTBs) and non-tariff trade measures. Tariff Measures: NTMs) as well as organizing trade promotion activities aimed at potential countries such as the GCC, Latin America, South Asia, etc., to help expand trade opportunities and support the export sector

. The government has accelerated the disbursement of the budget to meet the target. especially investment projects still stuck in the pipe to help stimulate the economy

Mr. Phiphob Chokwatana, a member of the Federation of Thai Industries (FTI), revealed that factors affecting Thai exports Domestic factors include high production and logistics costs, oversupply and high levels of inventories. There is also an increase in business competition. While external factors, foreign orders declined in line with economic conditions and some products declined seasonally, coupled with the influx of Chinese products to trading partners and new trade rules and regulations from trading partners. including geographic conflicts

In this regard, the FTI has compiled data from the survey results of the Industrial Confidence Index. and economic and industrial indicators data from various agencies for the past 3 years, prepared as a Dashboard, disseminated on the Economic and Industrial Data Center (iDS) website of the FTI to facilitate entrepreneurs. and the general public to have access to useful information in business operations. which can access the service of such information at www.fti.or.th/ids .-Thai News Agency

Source: Thai News Agency