BANGKOK, 27 Mar 2014,The Fiscal Policy Office is expecting the Bangkok International Motor Show 2014, being held at Impact Arena Muang Thong Thani now until April 6th, to boost March’s car sales.
According to the FPO’s report, car sales significantly dropped in February due largely to the expired first car buyer policy and the political impasse, which discouraged household borrowing and spending. Auto sales contracted by 45.15% during the past 2 months, a visible signs of private spending decline in this year’s first Quarter.
The FPO’s analysis showed that February’s Industrial Confidence Index was at 85.7 points, a decrease from January’s 86.9 points. The figures signify attitude of industrial operators towards the prolonged political instability as well as the dropping in economic confidence among consumers, which result in receding spending.
The office pointed out that spending decrease in the agricultural sector and high production material costs have diminished sales in related industries and discouraged production among manufacturers.
February is the 20th consecutive month that the nation has seen the Industrial Confidence Index below the standard 100 point mark, said the office, adding that the month’s figure was the lowest in 56 months, since July 2009.
