AUGUST SEES FIRST DROP IN INDUSTRIAL SENTIMENT IN FIVE MONTHS

       The Thai Industries Sentiment Index (TISI) fell for the first time in five months in August, due mainly to lower orders, higher production costs and a shortage of labour.
       This was the finding of a new survey from the Federation of Thai Industries (FTI) that also showed automotive production increased in August, thanks to the global economic rebound and greater demand at home and abroad.
       The TISI dropped from 89.9 points in July to 88 in August.
       The survey also showed the Industrial Confidence Index (ICI) for the fourth quarter grew last month to 102.1 points, thanks to manufacturers seeing positive signs of economic recovery and more purchasing orders.
       It was the first time in 20 months for future confidence to break the 100-point barrier.
       The FTI surveyed 1,128 respondents from various industries nationwide. A score of less than 100 points means manufacturers expressed weak confidence, while above 100 points indicates a positive outlook.
       However, chairman Santi Vilassakdanont said the Manufacturer Confidence Index had dropped slightly last month, due to lower purchasing orders for some industries and a rise in the oil price during the month.
       The rubber and plastics industries are facing higher production costs, due to more expensive raw materials.
       To ensure better sentiment for the industrial sector, the government should regulate the oil price, promote alternative energy, stabilise the exchange rate and develop skilled labour, said Santi.
       He said the construction industry would grow significantly in the fourth quarter, mainly from the government's Thai Khemkhaeng stimulus package for mega-project and irrigation development.
       Other industries expressing improved confidence were medicine, wood, herbs, petrochemicals, automobiles, sugar and biotechnology.
       Vice chairman Payungsak Chartsutipol said manufacturers would use more than 60 per cent of their production capacity in the fourth quarter, thanks to the global economic recovery increasing demand for goods.
       He added that the government must refund corporate tax to exporters, in order to increase financial liquidity for traders. It must also seek tariff privileges for supporting industrial growth.
       Surapong Paisitpatnapong, spokesman for the FTI's Automotive Club, said vehicle production was expected to show an increase to 303,600 units for the last four months of the year. Although that would be down year on year, it would beat June-August production of 233,870 units.
       In August alone, automobile production grew 12.25 per cent month on month to 84,170 units, the highest volume this year. However, auto production was down 41.98 per cent to 548,238 units in the first eight months.