Confidence in manufacturing, employment drops

[webfact]

Confidence in manufacturing, employment drops

By The Nation

 

The Business Sentiment Index (BSI) dropped to 47.4 in November 2019, which was below the 50 threshold for eight consecutive months.

 

The Business Sentiment Index (BSI) dropped to 47.4 in November 2019, which was below the 50 threshold for eight consecutive months due largely to weaker confidence in the manufacturing sector, according to a central bank report on Monday (December 2).

 

However, the confidence of respondents in the non-manufacturing sector held steady this month, the report said. Their order books and investment sentiment improved slightly, while the positive performance outlook edged down.

 

 

The three-month BSI fell to 52.7 due to a softened positive outlook in almost all sub-indices, especially in production and performance.

 

In November 2019, the BSI decreased from the previous month to 47.4, mainly driven by a pessimistic view of respondents in the manufacturing sector. 

 

Automotive and petroleum-related sectors showed reductions in production, performance and orders because of a sluggish demand both domestic and external, as well as inconclusive trade negotiations between the US and China. 

 

 

There was also a broad-based decrease in sub-indices, especially for production and performance. 

 

In particular, respondents in the construction and machinery manufacturing sectors were less optimistic on future production and performance, in line with their investment conditions that have not recovered yet.

 

However, the expected BSI and almost all sub-indices remained above the 50 threshold, indicating that most respondents still expected an economic expansion in the future, the report said.

 

Weak domestic demand remained the most important constraint in doing business this month, consistent with the persistent deterioration of sentiment in domestic order books for six consecutive months.

 

 

Furthermore, more respondents expressed concern over economic uncertainty, which was also partly reflected by the downtrend of the performance sentiment index as well as the worsened business sentiment in employment over the last three months particularly in the manufacturing sector.

 

However, expected inflation in the next 12 months remained unchanged at 1.7 per cent, the report added.

 

Source: https://www.nationthailand.com/business/30379005

 

-- © Copyright The Nation Thailand 2019-12-03

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[yellowboat]

Oh but the Chinese were coming over to set up shop, what happened.   Pushed over to Vietnam and Cambodia more likely. 

[RichardColeman]

If I were Thai I would be extremely worried by a 5% drop in the employment chart in a year

[Destiny1990]

More flat growth <deleted>..

[saengd]

7 minutes ago, RichardColeman said:

If I were Thai I would be extremely worried by a 5% drop in the employment chart in a year

That's sentiment, not percentage unemployed.

[neeray]

That's a very appropriate acronym. BS Index.

[hotchilli]

More evidence of Thailands leader doing nothing for the country.

[Thian]

3 hours ago, RichardColeman said:

If I were Thai I would be extremely worried by a 5% drop in the employment chart in a year

Well they can easy employ 5 extra in every Homepro/Tops/Makro....100 or 105 employee's doesn't make a difference.

Edited December 3, 2019 by Thian

[bronzedude]

It's off to the nearest unemployment office to get their unemployment checks. 

[DJ54]

Read today China set up China Telecom in Cambodia building infrastructure etc. .. part of the Silk Road whatever it is...

[CLS]

Declining for 8 consecutive months, just since the so-called elections then. A coincidence?