Thailand: Strong Jun 18 sentiment on growth signs

  • Thai business confidence improved in Jun 18, boosted by the government’s economic stimulus measures, a weaker baht, which is good for tourism and exports, growing border trade and recovering farm prices.
  • The Thai Chamber of Commerce’s new index, which gauges nationwide business sentiment, increased to 48.4 points in Jun 18 from 47.7 in May 18 — the month it debuted.
  • The TCC Confidence index sampled 324 TCC members nationwide, with 66.5% from the agriculture sector, 15.8% from the industrial sector, 9.7% traders and 8% from the service sector.
  • Kalin Sarasin, chairman of the chamber, said a higher rating in Jun 18 implies a better economic recovery in each region, adding that regions engaged in tourism and/or fruit exports particularly boasted export outstanding economic growth.
  • “Based on the TCC Confidence Index, which rose nearly 50 points in Jun 18, the Thai economy has started its recovery with broader income distribution,” said Mr Kalin. “A clearer picture is expected to appear in the 4Q18.”
  • But Mr Kalin said the business sector is still waiting for new measures to tackle income inequality and low farm prices, the main cause for weak consumption in regional areas.

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