Industrial entrepreneurs' confidence index drops for 2 consecutive months

[webfact]

Industrial entrepreneurs' confidence index drops for 2 consecutive months

BANGKOK, 17 March 2016 (NNT) – The confidence index of industrial entrepreneurs in February 2016 decreased for second consecutive months, following the lower purchasing power in the country and drought.

The Federation of Thai Industries on Wednesday announced the results of a survey on the confidence of industrial entrepreneurs in February 2016. The confidence index stood at 85.1%, decreasing from 86.3 in January this year.

Apart from the lowering purchasing power and drought, worsened liquidity of SMEs and the global economic slowdown were the factors which made industrial entrepreneurs more careful with their investment expansion, the survey found.

The survey also found that the entrepreneurs wanted the government to urgently stimulate consumption and investment in infrastructure in order to propel the economy in the second quarter 2016. They suggested that the government impose financial measures to help them access capital sources more.

As for the automotive industry, car production for export in February was 104,679 units, decreasing from the same period last year by 5.73%. However, the car export value in February increased by 11.62% or more than 76 billion baht.


-- NNT 2016-03-17

[worgeordie]

But everyone is still happy,right, the drought is going to get the

blame for many things in the near future.

regards Worgeordie

[kotsak]

Blame it on the drought..

I personally blame it on the boogie

Edited March 17, 2016 by kotsak

[lonewolf99]

Yeah...... this is the kind of headline in other countries that makes their currency plunge - but not here folks - the baht stays right up there... no matter how bad the news...ooops I forgot there is no bad news..the glass is not just half full its over flowing ...but not with H2O.....

[bander]

I bet the set index reach 1450 next month and 1500 in may.

[rickirs]

worsened liquidity of SMEs ... which made industrial entrepreneurs more careful with their investment expansion

How can this be?

The government has been stimulating the economy:

- Bt85 million in government funds to spur SME development

- Government Savings Bank offers soft loans to SMEs to help them improve liquidity.
- Bt100 billion in government soft-loans for villages

Yet, a recent survey of entrepreneurs conducted by the Dhurakij Pundit University found that about 78% found their economic situation was unchanged or worsened.

The government may have lost control, assuming it ever had control, over the economic wellbeing of Thailand.

[rickirs]

I bet the set index reach 1450 next month and 1500 in may.

Executive Director of Finansia Syrus Securities Plc Mr. Kuntra Ladavalya Na Ayudhya recently set a target of the Thai stock index this year at 1,500 points under the condition that the government has clear investment plans in place and the annual GDP growth reaches 3%. Otherwise, he said the stock index could slip and test the support level at 1,200.

Also recently, the World Bank said that Thailand’s growth is expected to contract from 2.5% GDP growth in 2015 to just 2.0% growth in 2016.

Please don’t buy on the margin.