Chinese New Year Boosts Industrial Confidence Index, Showing Positive Economic Signals

Nawa Chantanasurakhun, Vice President of the Federation of Thai Industries (FTI), revealed that the industrial confidence index for January 2024 increased to 88.7, up from 88.2 in the previous month, reflecting positive signals from multiple factors. The industrial sector has resumed normal production activities after the New Year holiday period and is accelerating production to meet Chinese New Year order demands, particularly in processed food, clothing, and packaging industries. The increase in tourist numbers during the New Year, combined with government tourism promotion measures like direct flight routes and regional events, continues to help distribute income to local regions and businesses. Additionally, the approval of seven new data center investment projects valued over 96 billion baht in the Eastern Economic Corridor (EEC) supports the expansion of advanced technology industries and increases demand in electronic equipment sectors. Pre-election activities have also stimulated spending from both public and private sectors, increasing money circulation through activities like campaign printing and political event preparations. The improving security situation along the Thai-Cambodian border, following ceasefire agreements, has allowed people to return to the area and facilitated economic activity restoration. However, challenges remain, including low government investment budget disbursement, increased social security contributions affecting labor costs, and ongoing concerns about PM2.5 pollution, exchange rates, and global geopolitical tensions.