FTI Reports September Industrial Confidence Rises Amid Flood Concerns
The Federation of Thai Industries reported that September’s industrial confidence index rose to 90.70, driven by lower electricity rates and stronger year‑end orders, while electric‑vehicle sales surged. However, flooding in central and eastern Thailand, higher diesel prices and rising freight costs are pressuring factories and supply chains, and increasing imports are squeezing small‑and‑medium enterprises.
The FTI chairwoman, Phimjai Lee Issaranukul, said the September industrial confidence index stood at 90.70, up from 89.7 in August, due to a cut in electricity tariffs from 3.95 to 3.89 baht per unit and stronger orders ahead of the year‑end festival, notably in processed food, furniture, fashion and lifestyle items. Battery‑electric vehicle sales jumped 100.8% in the first eight months and plug‑in hybrids rose 35.3% compared with the same period last year, while technology demand received support from AI investment, data centres and the Thai Thai Plus scheme that helps boost sales for small retailers. Nonetheless, the industrial sector remains under pressure from flooding in the central and eastern regions that has affected factories, raw‑material transport and supply chains. September diesel prices averaged 40.28 baht per litre, up 7.3% from the previous month, and shipping rates on the Australia route surged 63%, adding to exporters’ costs. Meanwhile, an 8.3% rise in imported consumer goods is accelerating price competition, squeezing SMEs that face limited financing and cost constraints. The three‑month forward confidence index climbed to 97.70 from 97.0, buoyed by easing US‑China trade tensions, reconstruction demand for building materials and electrical appliances after floods, and the extension of the Thai Thai Plus programme. Nevertheless, the FTI warned that floods, Middle‑East conflicts and the Russia‑Ukraine war could further raise costs and strain liquidity. It urged the government to adopt proactive water‑management, improve early‑warning systems, assess damage and pay compensation, promote energy‑saving through electricity discounts, upgrade production processes and install solar panels, and push Made‑in‑Thailand products in government procurement to enhance competitiveness of Thai producers.
