TISI rises for 3rd month in August but FTI does not paint rosy picture

[snoop1130]

 

BANGKOK (NNT) - The Thai Industries Sentiment Index (TISI) improved in August. This revelation follows the improvement seen in August’s consumer confidence index. Nonetheless, the Federation of Thai Industries (FTI) warns that the global economic slowdown needs to be watched carefully.

 

The TISI stood at 90.5 in August, having increased for the third month in a row thanks mainly to domestic factors. These include economic activity returning to near normal levels and an improvement in domestic consumption. These developments are reflected in an expansion of demand for goods from the industrial sector. Meanwhile, the tourism sector is emitting signs of improvement after the termination of the Thailand Pass system and the extension of the We Travel Together scheme.

 

Federation of Thai Industries Chairman Kriengkrai Thiennukul said negative factors arising from the global economic slowdown need to be followed up on. This is especially true about the matter of inflation in Thailand’s crucial trade partners such as the United States and Europe. Uncertainties still surround the Russia-Ukraine conflict while the semiconductor shortage is still having an impact on goods production. Mr. Kriengkrai said the shortage’s impacts on electrical appliances, electronics, and certain models of automobiles are negative factors for Thailand’s export sector.

 

The FTI chairman said although the TISI has risen, businesses view that the Thai economy will expand slowly. Meanwhile, businesses are concerned about the minimum wage hike on October 1 and the increase in the electricity charge during the September-December billing cycle. These developments are expected to raise costs for businesses and the private sector is therefore calling on the government to issue amelioration measures. Mr. Kriengkrai said these measures might take the forms of a power bill discount for SMEs, subsidized hiring of labor, and facilitation of migrant labor importation.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG220914113818302

 

-- © Copyright NNT 2022-09-14

 

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[spidermike007]

Total fiction. So many are out of work. So few new cars are being sold. Real estate sales are down. Tourism is devastated and barely recovering. The economy here is in a shambles, and the cover up is nonstop and absolutely shameful. 

[Artisi]

The sooner the BS stops the better, I'm waiting to repatriate some money once the exchange rates gets back to reality..... 

[Isaan sailor]

Keep the Baht down, and things should slowly improve.

[Cake Monster]

Any person that lives here, and walks around without wearing Rose Tinted Glasses, will have seen over the past several Months a very marked slowdown in the Economy in general.

Tourist arrivals and Vacationers is still very poor.

The Factories are not as busy now, with Staff having little or no overtime, and in some cases there are even layoffs.

Local Markets are very quiet, with few customers willing to spend.

The pace at which people are trying to borrow Money is increasing, along with NPL of Loans on Vehicles and Houses.

The Property Market has slowed significantly from even 6 Months ago

16 hours ago, snoop1130 said:

Meanwhile, businesses are concerned about the minimum wage hike on October 1 and the increase in the electricity charge during the September-December billing cycle. These developments are expected to raise costs for businesses and the private sector is therefore calling on the government to issue amelioration measures. Mr. Kriengkrai said these measures might take the forms of a power bill discount for SMEs, subsidized hiring of labor, and facilitation of migrant labor importation.

The combination of a 18 % rise in Electricity over and above the 7 % seen in May, and a new minimum Wage rate, is going to add even more pressure to an Inflation rate that IMO is understated at 7.6 %, as all factory Gate goods will rise in price to the Consumer.

The future is indeed not looking too Rosy