The Industrial Confidence Index in March this year dropped for two consecutive months to 101.6 and is likely to continue falling over the next three months mainly due to the prolonged political rally and the private sector's concern on the political problem.
Honoraray chairman and ex-chairman of Federation of Thai Industries Santi Vilassakdanont said the March index fell to 101.6 from 114.5 in February. The prolonged anti-government protest has an impact on the consumer confidence and consumer spending, the key factor that pressured the industrial index last month.
Besides, the drought in many arable areas has affected the agricultural output, which will reduce raw materials to the food manufacturing industry.
According the FTI's monthly survey, political factor now weighed 75.7 per cent of the factors determining the confidence, up from 62.9 per cent in February. Other concerns were put in global oil prices, foreign exchange rates, the global economic situation and interest rates.
