Suphan Mongkolsuthi, chairman of the Federation of Thai Industries (FTI), said the Industrial Confidence Index in February 2022 was at 86.7, down for the first time in six months from 88.0 in January. The index components Decreased in all items including overall orders, total sales, production volume operating costs, and performance.
The index, based on a survey of 1,242 entrepreneurs in 45 industries, fell to 86.7 from 88 in January, according to data from the Federation of Thai Industries (FTI).
Continuously rising number of new COVID-19 infections, which forced the Thai government to raise the COVID-19 alert level to the second-highest tier last month, and surging production costs due to higher prices of raw materials, energy, and freight costs, were the main factors that affect industrial players’ confidence, said FTI Chairman
The exchange rate fluctuations and supply chain disruptions also added to the gloom, according to Suphan.
However, the three-month sentiment index climbed to 97.1 from 96.4 in January, amid rising optimism that the global economic recovery would support Thailand’s exports, and easing entry rules would lift the tourism sector.
Recently, Thailand reported 22,984 new cases and 74 additional deaths, bringing the total number of infections to more than 3.11 million and that of death toll to 23,512, according to the Center for COVID-19 Situation Administration. As a result, government moves the COVID-19 restriction level from 3 to 4 mean less possibilities to increase the cash circulation.