Thai industrial confidence falls by 1.6 points in August ’24

Thailand’s industrial confidence took a downturn in August 2024, primarily driven by a slowdown in domestic demand and tighter lending conditions.

The Thai Industries Sentiment Index (TIS) fell to 87.7 last month from 89.3 in July, marking a decline across all components of the index.

Based on a survey of 1,330 entrepreneurs from 46 industry groups, the Federation of Thai Industries (FTI) noted a significant decrease in local demand.

Domestic auto sales, for instance, slumped by 23.71 per cent year-over-year during the first seven months of 2024.

Additionally, household debt reached 90.8 per cent of Thailand’s gross domestic product in the second quarter, raising concerns about consumer spending.

Looking ahead, the TIS forecast for the next three months has also weakened, dropping to 93.9 in August from 95.2 a month earlier.

Entrepreneurs expressed concerns over rising national minimum wages, increasing non-performing loans, and escalating geopolitical tensions.

Despite these challenges, the government’s cash stimulus measures and the anticipated revival of the tourism industry during the peak season in the fourth quarter are expected to provide some support to the economy.

Attribution: Xinhua

Subediting: M. S. Salama