BANGKOK, Jan. 20 (Xinhua) -- Thailand's industrial confidence dropped in December 2024, weighted down by slowing domestic demand and rising agricultural material costs resulting from flooding, data showed on Monday.
The Thai Industries Sentiment Index dipped to 90.1 last month from an eight-month high of 91.4 in November as all components of the index decreased, according to the Federation of Thai Industries (FTI).
The reading was based on a survey of 1,372 entrepreneurs from 46 industry groups under the FTI.
A slowdown in the industrial manufacturing sector following accelerated production in November owing to fewer working days and the extended New Year holidays, along with ongoing flood situations and unpredictable weather conditions in the southern region, also contributed to the waning confidence, the FTI said in a statement.
The index forecast for the next three months fell to 95.5 in December from 96.7 a month earlier, as entrepreneurs were concerned over an average of 2.9 percent increase in the minimum wage and potential trade barrier risks impacting the Thai export sector.
However, the government's economic stimulus, including tax reduction measures and the second phase of the cash handout program targeting senior citizens, is expected to help boost purchasing power in the first quarter of 2025.
The group urged the government to issue relief measures for small- and medium-sized enterprises affected by the minimum wage hike, effective from January, as well as promote energy conservation and enhance the efficiency of machinery and equipment in factories to reduce production costs. ■