BANGKOK, Oct. 14 (Xinhua) -- Thailand's industrial confidence improved in September as reduced electricity tariffs helped ease business operating costs and lower living expenses for consumers while the year-end festive season spurred orders, data showed on Wednesday.
The Thai industrial sentiment index rose to 90.7 last month from 89.7 in August as most key components of the index increased, notably operating performance, total sales, production output, and total orders, despite rising cost pressure, according to the Federation of Thai Industries (FTI).
Passenger car sales trended upward, with battery electric vehicle sales surging 100.8 percent year-on-year and plug-in hybrid electric vehicle sales rising 35.3 percent in the first eight months of the year, contributing to the rebound in sentiment, said Pimjai Leeissaranukul, chairperson of the FTI.
Meanwhile, demand for technology products continued to expand, supported by investment in artificial intelligence infrastructure and data centers, Pimjai said.
However, she noted that the industrial sector is still facing ongoing risks, especially flooding across central and eastern provinces that damaged commercial operations and housing, hampered freight and input logistics, and created supply-chain bottlenecks in certain sub-sectors toward the end of September.
Based on a survey of 1,330 businesses across 48 industry groups conducted by the FTI, concerns about certain factors declined, namely the domestic economy, government policies, and lending interest rates. Meanwhile, worries about energy prices, the global economy, exchange rates, and access to credit mounted.
The index forecast for the next three months stood at 97.7 in the September survey, edging up from 97.0 a month earlier, reflecting a more optimistic outlook for the industrial sector, partly supported by easing global trade tensions.
Nevertheless, businesses remain exposed to flood threats across several provinces, where the pace and scope of state assistance, alongside post-disaster rehabilitation efforts, warrant close attention, the FTI said in a statement.
The group called on state authorities to adopt proactive flood risk management, including early warning systems and faster insurance compensation, promote energy efficiency initiatives to counter volatile energy prices, and prioritize Made in Thailand certified goods in public procurement, with tax incentives for private-sector use. ■