Thai Industries Sentiment Index (TISI) in August declined

Editorial Staff

Thai Industries Sentiment Index (TISI) in August declined

Thai Industries Sentiment Index (TISI) in August declined caused by export deceleration due to slowdown global economy and concerned among entrepreneurs about the government policies.

Mr. Kriengkrai Theinnukul, chairman of the Federation of Thai Industries (FTI), and Mr. Montri Mahaplerkpong, vice chairman of the Federation of Thai Industries (FTI), revealed that the Thailand Industry Sentiment Index (TISI) survey result for August 2023 was 91.3. This marked a decrease from 92.3 in July, making it the second consecutive monthly decline and the lowest point in a year.

Mr. Kriengkrai Theinnukul

Consider the components of the sentiment index, all components declined, including the index of total orders, the total amount of sales, production quantity, and turnover, except for operating costs. Furthermore, the decline of the Thai Industries Sentiment Index (TISI) in August 2023 is a result of export deceleration due to global economic conditions and a decrease in the purchasing power of trade partners, particularly in the United States, China, and European countries.

This decrease in purchasing power has led to a reduced demand for industrial goods. The slow recovery of the domestic economy also attributed to the high level of debt in households and the business sector. Increased interest rates have resulted in higher financial costs and increased entrepreneurial debt.

Moreover, weather fluctuations caused by the El Niño crisis have led to the depletion of crops and a decline in farmer income, putting pressure on the region's purchasing power. In addition, the entrepreneurs are still concerned about the government policies under coalition government. However, there are some supportive factors, such as growth in the tourism sector, which is leading to an increase in domestic consumption and contributing to a decrease in the inflation rate. The forecast index for the next three months is 99.5, down from 100.2 in July.