Survey finds CEOs starting to believe in Thai economic recovery
August 06, 2014 01:00 By The Nation
The latest chief executive officers' sentiment index shows a positive outlook following the economic-stimulus measures implemented by the ruling National Council for Peace and Order (NCPO), according to a joint survey by Krungthep Turakij newspaper and Dh
The monthly survey – conducted from July 15-28 among 429 CEOs – results in a collective view of their sentiment on the country’s prospects for economic recovery.
The economic index last month stood at 27 points out of 100, a rise of 15 points from June, and is expected to reach 38 points this month.
The five factors of most importance to CEOs’ business operations in July and August were the NCPO’s economic-stimulus measures, which received 4.3 points, followed by the Thai economic climate and public confidence, at 4.2 points each, and investors’ and CEOs’ sentiment and lack of funding sources, with 4.1 points each.
The four core business indices in Krungthep Turakij/Dhurakij Pundit University’s work are the Revenue Index, Production Costs Index, Liquidity Index and Employment Index.
The Revenue Index in July rose by 24 points, and is expected to increase to 35 points this month in line with the improving sentiment in the economy, supported by the NCPO’s stimulus policies.
Meanwhile, the Production Costs Index rose 18 points last month, and is expected to fall by 17 points in August.
The swing in the July and August figures for this index reflects the increase and expected decline in production costs over the two-month period.
The liquidity problems that have affected businesses since April pushed the Liquidity Index into negative territory at minus-29 points in July, with the number expected to fall further to minus-30 points this month.
The Employment Index increased from 3 points in June to 4 points in July, and is expected to remain steady this month.
Most employers face tight liquidity and are still operating below full capacity, which means they do not need to hire new workers for the time being.
The overall results of the survey show CEOs are starting to believe in the economic recovery since the NCPO has been administering the country and promptly tackling a number of key pending issues.
These include the overdue payments to rice farmers under the pledging scheme, implementation of stimulus measures to boost the sluggish economic and investment climate, and budget allocations for basic infrastructure projects to boost domestic and foreign investors’ confidence in the Kingdom.