TISI in next three months is up, say FTI

BANGKOK, July 19 (TNA) - The Federation of Thai Industries (FTI) says a latest survey has found the rising Thai Industrial Sentiment Index (TISI) over the next three months, when compared with the previous survey. FTI Chairman Chen Namchaisiri told journalists on Wednesday the latest survey in June 2017 found that TISI over the next three months rose to 100.7, from 99.6 in the previous survey in May, as local business operators believed the Thai economy would further expand, stimulated by the government's spending on public projects and measures to assist local small and medium-sized enterprises (SMEs). Besides, Chen said, the increased TISI was boosted by local business operators' confidence that Thai exports would keep growing in line with the recovering economies of Thailand's trading partners. Chen conceded, however, that TISI in June 2017 alone dropped from 85.5 in the previous survey in May to 84.7, the lowest level in 10 months, noting that all components of TISI declined in the June's survey, including overall purchase orders, total sale, total output, business operational costs and business performance. Chen cited local business operators' concerns over purchasing power in Thailand as a main reason, as local households appeared to be more careful in their spending, coupled with a slowdown in domestic businesses during the present rainy season and concerns in the local business sector, especially SMEs, on the shortage of labor and other negative impacts from the new executive decree on the management of migrant workers. The FTI chief suggested, meanwhile, that local business operators use more machines to reduce their dependence on migrant workers and import more capital goods and raw materials they need for their production during the appreciation of the Thai baht currently. The FTI chair proposed that the Bank of Thailand (BOT) closely monitor the strengthening Thai baht and intervene, if necessary, through existing mechanisms to handle the situation efficiently if the current appreciation of the Thai currency is caused by rising capital inflows. (TNA)