ดัชนีเชื่อมั่นอุตฯ ปรับตัวเพิ่มขึ้นครั้งแรกในรอบ 4 เดือน ชี้รัฐเร่งอุดช่องโหว่ สินค้าตปท. ราคาถูกทะลักเข้าประเทศIndustry Confidence Index Increases for the First Time in Four Months Indicating Government Efforts to Address Vulnerabilities from Foreign Goods Influx

Mr. Kriangkrai Theeranukul, Chairman of the Federation of Thai Industries (FTI), along with M.L. Pikthong Thongyai, Vice Chairman of FTI, Mr. Apichit Pasaprat, Vice Chairman of FTI, and Ms. Phanrat Phetphakdi, Director-General of FTI, jointly revealed the results of the industrial confidence index survey for July 2024, which stood at 89.3, an increase from 87.2 in June 2024. This marks the first increase in four months, driven by rising domestic demand in consumer goods, particularly in the food and pharmaceuticals industry, as well as cosmetics. The acceleration of budget disbursement and government spending has led to an influx of funds into the economy, positively impacting industrial goods, especially construction materials. Additionally, there are supportive factors from the growth of the tourism sector, arising from the free visa measures for foreign tourists and government initiatives to promote domestic tourism during the low season.

However, in July, negative factors included high household debt and non-performing loans (NPL), which continued to pressure domestic consumption. This is evident from automobile sales in the domestic market and automobile exports in the first six months (January – June 2024), which contracted by 24.16% and 1.85% respectively, compared to the same period last year. The real estate sector has also slowed down due to weakened domestic purchasing power. Meanwhile, exports have slowed down, particularly for durable goods such as air conditioning and refrigeration products, jewelry and ornaments, and electronics. Transportation costs have also increased, including shipping rates and various additional charges (Surcharge).

From the survey of 1,323 operators covering 46 industrial groups of the Federation of Thai Industries (FTI) in July 2024, it was found that concerns among operators have increased regarding the global economy at 66.8%, domestic political situation at 58.7%, and exchange rates (from the exporters' perspective) with reference to the exchange rate of the Thai Baht against the US Dollar at 37.9%, respectively. Meanwhile, the factors of concern that have decreased include the domestic economy at 61.2%, oil prices at 60.6%, and loan interest rates at 57.1% respectively.
The confidence index forecasting three months ahead is at 95.2, up from 93.4 in June 2024, supported by the acceleration of government spending and investment, which helps stimulate the economy in the second half of 2024. The growth of the tourism sector, resulting from the free visa measures for foreign tourists, as well as government economic stimulation measures such as the 10,000 Baht cash injection through Digital Wallet, are also contributing factors. However, operators still express concerns regarding uncertainties in the global economy, which remain a risk factor for export growth, while production costs are expected to rise, particularly with the policy to increase the minimum wage to 400 Baht per day.

Recommendations to the Government:
1. Recommend that the government issue measures to promote energy conservation and improve machinery and equipment efficiency to reduce energy consumption, as well as promote energy management systems in the transportation sector, such as supporting energy conservation projects and reducing costs in the SME industry (ENERGY POINTS 3).
2. Recommend that the government set measures to oversee foreign e-commerce platform providers to prevent the influx of cheap foreign goods and substandard products.
3. Recommend that the government set conditions for purchasing domestically produced goods or goods marked as Made in Thailand in the Digital Wallet program to create opportunities and generate circulation in Thai entrepreneurs' businesses.

The FTI has compiled data from the industrial confidence index survey and economic and industrial indicators from various agencies over the past three years into a Dashboard published on the website of the Economic and Industrial Data Center, Industry Data Space (iDS) of FTI to facilitate entrepreneurs and the public in accessing useful information for business operations. The data can be accessed at www.fti.or.th/ids
The FTI aims to “Strengthen Thai Industries for Stronger Thailand.”

Published by the Corporate Communications Department, Federation of Thai Industries (Tel. 0-2345-1013)
Compiled by the Economic and Academic Department, Federation of Thai Industries (Tel. 0-2345-1111)