The upbeat sentiment is mainly due to the government's accelerated spending and the low interest rate.

"The confidence increase is in line with the higher import value in April and it could mean that industrial operators have started importing machinery for future expansion," Santi said.

He said low interest rates would, in particular, have boosted confidence.

More details of the May industrial index would be announced today.

The sign of emerging confidence marks a turnaround after earlier industrial indexes showed a drop in investor confidence due to the gloomy political situation.

The National Economic and Social Development Board (NESDB) announced earlier that the value of imports in April totalled US$10.7 billion (Bt355 billion), an increase of 11.2 per cent from the previous month.

A source at the NESDB, however, attributed the rise in part to the import two aircraft worth around $215 million.

Santi, who is a member of the economic-steering committee presided over by Deputy Prime Minister Kosit Panpiemras, said the committee resolved at yesterday's meeting to establish a subcommittee to evaluate the impact on each business sector, particularly consumer products, construction and banking.

The NESDB also presented the committee a report that showed a sustained level of consumer purchasing power. However, consumers are still hesitant to spend due to low confidence about the country's political situation and economic slowdown.

He said the committee had assigned the Commerce Ministry to hold more "blue-flag" fairs to encourage consumer spending.

It would focus more on communicating with the public in a bid to boost consumer confidence, he said.

"One of our problems is that consumers do not understand the current economic situation well. Hence, it is our duty to explain to them."

Kosit said after the committee meeting yesterday that panel members focused on how to win back consumer confidence. He expected the economic situation to improve in the fourth quarter. "The overall economic situation and confidence should improve after the general election and the forming of a new government," he said.

Kosit said he had asked the Board of Investment to go overseas to explain the situation to foreigners who may be interested in investing in Thailand. He also urged Thai operators to promote the competitiveness of their products.

Chalida Ekvitthayavechnukul

The Nation