Industrial confidence index for January drops for the first time in 5 months

Industrial confidence index for the month of January dropped for the first time in five months to 86.3 points from last December’s 87.5 points, said Mr Suphan Mongkolsuthee, president of the Federation of Thai Industries, today.

He attributed the declining confidence in the industrial sector to the concern over drought problem, risks from global economy, especially Chinese economy and declining domestic purchasing power.Industrial operators however welcomed global oil price slump as it helped reduce production costs.

The FTI predicted that industrial confidence index for the first quarter of this year would drop to 100.8 points compared to the last quarter’s 102.7 points reflecting industrial operators’ concern over volatility in global money market which will impact on foreign exchange rates.However, the FTI pointed out that operators still have confidence in the economy and to carry on with their businesses.