BANGKOK, Oct 10 – Thailand’s economic index declined from -2 in August to -7 in September, reflecting the country’s sharp economic downturn, according to a survey jointly conducted by Dhurakij Pundit University and Krungthep Turakij newspaper.
The survey of 403 business executives between September 23 and October 2 predicted the situation to worsen this month at -8.
Five major factors which posed negative impacts to the economy in September and October were the general economic situation in the country, declining market demand, global economy, cost of raw materials and currency exchange volatility.
The business indices involve four aspects – the revenue index, the cost index, the liquidity index and the employment index.
Revenue index was -10 and could decline to -11 this month due to economic slowdown and higher cost of living which has a negative impact on the people’s purchasing power.
On the contrary, cost index rose to 54 points in September and it was predicted to decline to 47 points this month.
The decreasing revenue which contrasted to higher business costs resulted in a decline of the liquidity index to -3 in September and predictably -5 this month.
Employment index slipped for the first time to -3 points in September but it should slightly pick up to -1 this month – a sign of an improved employment trend in line with the economy and operation performance.
The survey concluded that the business challenges encountered by the private sector were directly due to the Thai economic slowdown, successive decline in purchasing power, global economic trend and liquidity problem.
Some industrialists have managed to find financial sources and adjust their management systems by such measures as a shortened debt collection period, speedy sales of products and increased manufacturing efficiency.
Business executives said they had to adjust their businesses to cope with the current economic situation but such an action was merely short term.
They expressed concern that unless the Thai and global economies improve in the next 3-6 months, the problem of liquidity will become a significant factor affecting the operating of their businesses as in the case in the first two quarters of this year.
