Loss of confidence
Business confidence sagged last month, with investors growing wary after the deadly New Year's Eve bombs in Bangkok and ongoing unrest in the predominantly Muslim South.
The Federation of Thai Industries' Thai Industries Sentiment Index (TISI) dropped to 83.6 last month, from 85.9 the month before, nearing its record low of 81 last July. It was the 10th straight month the index has stayed below the 100-point mark since last April. From the survey of companies in 35 industries, 30 industries show a confidence index of below 100, indicating a slow-down in the industrial sector. "The factors eroding industrial confidence are internal politics, an economic slow-down and the bomb attacks in Bangkok. All have affected business confidence," Adisak Rohitasune, vice chairman of the federation, said in a statement. The federation also said the southern insurgency continued to dampen business sentiment. Nearly 2,000 people have been killed in the unrest since January 4, 2004, despite a raft of peace-building measures proposed by Army-backed Prime Minister Surayud Chulanont. The federation, which groups more than 6,400 businesses, polled 440 companies for the survey. Contributing to the TISI are five subindexes surveying confidence in orders, sales, production output, operating costs and financial performance. While the first three subindexes stayed above 100 points last month, the other two were lower.
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