Industrial confidence index changes course, rises in July

[elef]

Bangkok Post

21-08-2008

Link

 

Industrial confidence index changes course, rises in July

 

Thailand's industrial confidence index made a U-turn, and increased to 76.9 in July from 73.6 the previous month as operating costs in the industrial sector had declined due to lower oil prices, according to the Federation of Thai Industries (FTI).

 

 

FTI deputy chairman Adisak Rohitasune said the survey conducted with a random sample of 1,048 operators in 39 groups of industries showed that most industrial operators had enjoyed a continued increase in total purchase and sales orders.

 

 

The weakening of the baht for the fourth consecutive month had also boosted industrial competitiveness.

 

 

The expected confidence in the three months ahead rose to 82.9 from 77 because the operators believed their performance would benefit from declining oil prices and the weakening of the baht.

 

 

He said industries with the confidence index staying above 100 include alternative energy, waste treatment, refineries and gas.

 

 

It should be noticed that three of the four industries are energy-related, and had benefited from the surging energy prices.

 

 

Mr Adisak said the confidence among industrial operators in all regions except the East increased as a result of a decline in operating costs and an increase in total purchase and sales orders.

 

 

He revealed that the confidence among the operators focusing on distribution in both local and overseas markets also increased because they had benefited from implementation of the state economic stimulus package and the weakening of the baht that helped boost their competitiveness.

 

 

The FTI executive added that the business environment in July improved for the first time during this year due to declining oil prices, relative currency stability, and lower inflationary pressure. (TNA)

 

 

[Dexi]

Oil just rose 6$/barrel today...wonder if there still feeling optimistic...