BANGKOK, Sept. 12 (Xinhua) — Thailand’s industrial confidence fell to a one-year low in August as weak purchasing power among trade partners weighed on demand for industrial goods, data showed on Tuesday.
The Thailand Industry Sentiment Index (TISI) dropped to 91.3 last month from 92.3 in July as most components of the index declined, including total orders, total amount of sales, production quantity, and turnover, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,343 respondents from 45 industry groups under the FTI.
The declining August sentiment was attributed to the slow recovery of domestic economy on the back of high levels of debt in households and the business sector. Meanwhile, interest rate hikes have resulted in higher financial costs, the FTI said in a statement.
The three-month expected TISI decreased to 99.5 in August from 100.2 a month earlier as entrepreneurs worried about the sluggish recovery of domestic demand and the possible effects of fresh government policies on manufacturing costs, which may include increases in the minimum wage and changes to energy policy.
The group urged the new Thai government to implement economic stimulus measures focused on domestic demand to offset the decline in foreign demand, FTI Chairman Kriengkrai Thiennukul told a news conference.
He also recommended that the Bank of Thailand maintain the policy interest rate at 2.25 percent and lower the spread between deposit and loan interest rates.
