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Published on October 20, 2007

Santi said manufacturers in many industries faced high production costs, caused by the rise in oil prices and a global shortage of raw materials.

He said manufacturers of consumer products such as shampoo, soap and toothpaste had tried to maintain their prices as long as possible. But consumer products using imported raw materials and by-products from petroleum will probably increase in price at the beginning of next year because the makers cannot shoulder rising transportation costs and high prices of raw materials such as metal, flour and oil.

Some products not controlled by the Internal Trade Department have already raised their prices by 5 per cent, while the remaining items will eventually boost their prices if oil prices increase considerably for the rest of the year. However, Santi declined to name those products that would increase their prices. He said operators would raise their prices in line with increasing production costs because they did not want to push the burden to consumers and distort the overall market.

Meanwhile, September's industrial confidence index rose to 81 from 76 in the previous month thanks to an increase in domestic sales, orders and production.

FTI vice chairman Adisak Rohitasune said operators now had much more confidence for the rest of the year, as the index for operators' confidence in December has risen to 94.9.

Export-oriented manufacturers' confidence also increased because of a more stable baht and more orders to meet demand during the New Year and Christmas festivals.

Industrial operators who focus on the domestic market also had more confidence in September as a result of accelerated government spending and a more stable political situation.

However, small-sized manufacturers' confidence fell from August because they were affected by fluctuations in raw material prices.

The survey covered 571 samples from 35 industrial groups under the FTI.

Chalida Ekvitthayavechnukul

 The Nation