Industrial index drops in March to five months low

[Lite Beer]

Industrial index drops in March to five months low

BANGKOK: -- Industrial confidence index dropped in March for the third month in a row to 88.9 from 87.7 in February, the Federation of Thai Industries (FTI) said on Monday.

FTI president Suphan Mongkolsuthee said the decline was the lowest level in five months.

The survey of confidence index was conducted from 1,171 operators of 43 industry groups, he said.

Lack of confidence, fragile domestic and global economies, declining competitiveness due to lack of improvement in production technology to increased value, falling prices of farm products were blamed for the decline while the stronger baht also adds negative impact on exporter’s confidence.

But he said the expectation index toward the three-month economic situation rose to 100.4, up from 99.2 in February.

Business operators urged government to escalate spendings in both consumers and investors to drive economy and shore up industrial confidence, and to improve production technology.

They recommended investment in fundamental infrastructure projects to link with neighbouring countries to facilitate investment and trade, appropriate measures to stabilise the Thai currency, and support of using technology to improve production, and to support the country as the hub of trade and investment of ASEAN.

Source: http://englishnews.thaipbs.or.th/industrial-index-drops-in-march-to-five-months-low

-- Thai PBS 2015-04-27

[Gulfsailor]

"Industrial confidence index dropped in March for the third month in a row to 88.9 from 87.7"

Uhm, that's a 'drop' of -1.2. Either the journalist mixed it up or the FTI president doesn't know...

[soalbundy]

Just shows that TAT isn't on the job, it would have climbed 50% by now otherwise

[Srikcir]

Yet last week the Office of Industrial Economics announced that the industrial production in March broke its two-year record, standing at 71% of the full capacity. This may mean that manufacturers are building excess inventories due to lacklaster foreign and domestic sales. One more quarter of retail slowdown will cause factories to start dumping inventories with high discounts, slow manufactring by cutting back on shifts, and possibly closing factories. By 2015Q3 we may see the beginning of significant increase in factory unemployment with nowhere to go.

Propsects for an economic recovery are becoming slim to none this year.

[Muhendis]

Reading the article I see the same point mentioned twice. "Technology". Reading behind the lines a bit I take this to be a criticism of companies who would pocket their profits rather than reinvest and then complain to the BOT to do something about the Baht to increase their profits. BOT has given a clear message that such action is not necessary since Thailand has a trade surplus. I take that to include tourism. The point made by Srikcir about the excess production and likely contraction of industry is, I feel, valid but dependant on the wealth of company owners some of whom will cut and run and others who will reinvest and come out stronger when the dust has settled.