Business sentiment hits 15-month low

 

   

BANGKOK, 21 June 2019 (NNT) - Uncertainties regarding the forming of a new government and trade war concerns, have resulted in confidence among business operators in May 2019 continuing to decline, reaching a 15-month low, as shown in the latest TCC Confidence Index. The figure is however, expected to improve in June once the new government proceeds with proposed megaprojects, injecting the economy with cash flow expected to help the Thai economy grow by 3.5 percent this year.

 

The University of the Thai Chambers of Commerce (UTCC) has released the May 2019 TCC Confidence Index, showing results from a survey of 370 Thai Chambers of Commerce members nationwide.

 

The TCC Confidence Index figure in May 2019 is recorded at 47.7, which is the lowest in 15 months, with lower indication scores in all regions including Bangkok and neighbouring provinces. Consumption and investment performance has decelerated due to concerns regarding the forming of a new government, low farm product pricing affecting purchasing power, and the ongoing trade war between the U.S. and China affecting the Thai exports sector, the industrial sector, and trading sector.

 

UTCC’s Center for Economic and Business Forecasting Director Thanawat Ponvichai has described the Thai economy, especially local economies, as not robust, with farm product pricing becoming an issue in all regions, with only the tourism and service sectors in the eastern and northern regions performing above the median value of 50, indicating that the tourism industry is the key economic driver at the moment.

 

He said positive attributes can now be seen from improving farm product pricing in June, such as rice, palm oil, and rubber, while the establishment of the new government should lead to implementation of economic stimuli, especially disbursements of investment budgets, resulting in more hiring and procurement in various areas, as well as farm product price control measures, all of which are expected to help the Thai economy to grow by 3.8-4 percent in the latter half of 2019, pushing the annual growth this year to come in at 3.5 percent.

 

 

-- © Copyright nnt 2019-06-21

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21 minutes ago, webfact said:

Uncertainties regarding the forming of a new government

There is no uncertainty, the old one is still here.

Devalue the baht by 40% and roll back all the dumb visa rules 10 years and the economy will boom...

28 minutes ago, webfact said:

The figure is however, expected to improve in June once the new government proceeds with proposed megaprojects, injecting the economy with cash flow expected to help the Thai economy grow by 3.5 percent this year.

where does the cash come from?  

There will be no Silver Bullet, and confidence is not going to grow overnight. Shenanigans continue and doubt will continue to grow. 

 

Immigration harassment over good-paying foreigners is also going to bite them in the ass, as people look to other countries to spend their money and retire.

Import more and more of these zero-baht tourists and the situation is going to decline further, Oh, but never mind, arrivals are up ????

2 hours ago, webfact said:

The figure is however, expected to improve in June once the new government proceeds with proposed megaprojects, injecting the economy with cash flow expected to help the Thai economy grow by 3.5 percent this year.

Although from what we've been reading about the fabled 'high-speed' railway, I was under the impression it will be injecting cash into the Chinese economy, not the Thai.

4 hours ago, webfact said:

injecting the economy with cash flow

Should read, "... injecting the economy with BORROWED cash flow ..."

Similarly,

4 hours ago, webfact said:

once the new government proceeds with proposed megaprojects

Should read, " ... once the new government LOAN proceeds with proposed megaprojects ..."
As the Prayut junta government already approved the FY 2020 budget (Oct. 1, 2019-Sept. 31, 2020) in January 2019, the "new" government will have to amend that budget if priorities are changed to meet 2019 political campaign promises.

Until confidence that the government has the peoples best interest as the guiding factor in their decision making there will not be any growth in confidence for the business sector.

Its hard to stay confident, when businesses are getting raided or hit with new laws or new unreasonable regulations.

14 hours ago, NCC1701A said:

where does the cash come from?  

Stop  asking  ridiculous questions....................instructed  the PM