The Thai Industries Sentiment Index (TISI) has increased for the third month in a row as economic activity resumes following the easing of the nationwide lockdown, the Federation of Thai Industries (FTI) said on Thursday.
The index climbed from a low of 75.9 points in April, 78.4 in May and 80 in June to the latest of 82.5 index points in July.
All businesses including domestic tourism are now reopened but international travelling is still restrictive for tourists while the 14-day mandatory quarantine period is still intact.
The State of Emergency, due to end in August, could also be extended until the end of September to maintain the entry ban on tourists, the government said on Tuesday.
Supant Mongkolsuthree, the FTI’s chairman, said reopening businesses in Phase 3 and 4 of the lockdown’s easing period have contributed to the increased sentiment between May and July.
He said demand for industrial goods such as electrical appliances, electronics, clothing, and construction material have all increased.
The resumption of MICE activities such as the Motor Show and Mid-Year Sale promotion have also contributed to the increase in demand for industrial products, he added.
However, at 80 index point, the score is still below the 100-mark which means that the overall sentiment is low.
For the next three months, Supant said the industrial sentiment will continue to improve with demand for industrial products, but if there is a second wave of coronavirus infections in the nation then sentiment will definitely be down again.
There is also concern over the escalating trade war between the US and China which could further hamper exports.
The Bank of Thailand already expects the export value to contract by at least 10 per cent in 2020 because of the disruption in the global supply chain caused by the pandemic.
The forward-looking index decreased from 91.5 in May down to 90.1 in June but it has increased to 93 points in July, reflecting the improved overall industries sentiment for the next three months.
To further increase the industries sentiment, the FTI recommends that the government:
- Extend government measures to provide loan holidays for SMEs until the end of 2020
- Accelerate government spending on investments
