March’s industrial confidence index has taken a huge leap in Thailand as it marks the highest in the past decade. With a score of 98.3 points, the industry has witnessed a significant improvement in the post-pandemic period, marking a remarkable recovery after the downturn. The significant factors contributing to this success are attributed to the government’s efforts to prevent new surges of COVID-19 that have helped sustain a stable work environment, low-interest rates, and a rise in exports driven by economic recovery in major trading partners.
Thailand’s Industrial Sentiment Index (TISI) reached its highest point in a decade in March due to a rise in domestic demand, production increases and overall improved performance. Government Spokesman Anucha Burapachaisri stated that the only negative aspect was production costs. The TISI rose to 97.8 points in March, the highest level since January 2013. This rise in the index was based on an opinion survey conducted on 1,322 industrial entrepreneurs, covering 45 industrial groups. The businesses surveyed confirmed that domestic demand has improved, boosted by the farm sector’s increased purchasing power and the tourism sector’s recovery. The businesses are, however, concerned about rising production costs due to increases in raw material prices, fluctuations in energy costs, rising inflation rate and fluctuations in the baht currency. There remain many downside risks that could undermine industrial recovery, such as global economic fluctuations and geopolitical conflicts. The government is ready to respond to recommendations from the private sector.
