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Thailand: TCC confidence index ticks up for February
Business confidence recovered in February, boosted by the long-awaited general election on Sunday and the return of Chinese tourists.
The Thai Chamber of Commerce (TCC) confidence index, a gauge of nationwide business sentiment, edged up to 48.5 points after dipping to 48 points in January, the lowest in three months, from 48.4 in December, 48.3 in November and 48 in October.
The index sampled 377 TCC members nationwide from every region, spanning the agriculture, industrial, trade and service sectors.
“Overall sentiment in the business sector rose thanks to confidence in the country’s economic recovery, better tourism numbers, higher crop prices and the upcoming election,” said Thanavath Phonvichai, vice-president for research at the University of the Thai Chamber of Commerce (UTCC). “The economy will be more active after the next government is formed.”
Mr Thanavath warned that business remains concerned about the local interest rate, a stronger baht, and oil and farm prices, as well as export prospects and stiffer competition.
Customs-cleared exports fell for a third straight month in January, dragged by the global economic slowdown, the US-China trade war and the strong baht. Thailand’s outbound shipments contracted 5.7% year-on-year in January to UScopy8.9 billion.
Exports in baht terms fell by 5.7% year-on-year to 616 billion baht.
Import value in January rose 14% to $23 billion, resulting in a trade deficit of $4.03 billion, the highest since January 2013.
Agricultural and agro-industrial product exports fell 2.9% to $3.20 billion, weighed by rubber (-15.1%), sugar (-29.9%), cassava products (-18.5%) and rice (-1.0%), while exports of industrial products fell 5.9% to copy5.01 billion, led by oil-related products (-9.6%), internal combustion engines and parts (-33.9%), computers and parts (-10.1%) and automobiles and parts (-5.1%).
Mr Thanavath said the business sector is urging the government to accelerate income distribution and prosperity.
Infrastructure and local transport development need to be ramped up, while low crop prices need to be handled, he said.
The firms have also called on authorities to introduce more stimulus measures to increase purchasing power and promote community tourism and transparency.
Source: https://www.bangkokpost.com/business/news/1647620/tcc-confidence-index-ticks-up-for-february