BANGKOK, Feb. 21 (Xinhua) -- Thailand's industrial confidence improved in January due to rising domestic consumption and the government's tax refund scheme, data showed on Wednesday.

The Thai Industries Sentiment Index rose to 90.6 last month from 88.8 in December 2023 as most components of the index increased, including overall orders, overall sales, production volume and operating results, except the operating cost, according to the Federation of Thai Industries (FTI).

The reading was based on a survey of 1,331 entrepreneurs from 46 industry groups under the FTI.

The increase in sentiment was attributed to growing domestic demand, particularly for consumer goods, during the Chinese New Year festival and a significant surge in foreign tourist arrivals following a visa-free entry policy, the FTI said in a statement.

Despite that, financial institutions were cautious about approving loans due to concerns over high household debt, and a notable rise in international shipping costs resulting from tension in the Red Sea region remained a worry for importers and exporters.

The expectations index for the next three months climbed to 98.4 in January from 96.2 a month earlier owing to ongoing expansion in local and global demand, coupled with corrective measures including debt moratoriums for small and medium-sized operators.

However, continued geopolitical tensions are expected to have a significant influence on Thai exports in the near future, affecting supply chain resilience and contributing to energy price volatility.

The group urged the government to expedite approval for the fiscal year 2024 budget and plan for targeted spending, especially in investment budgets and procurement, to stimulate the economy, FTI vice chairman Montri Mahaplerkpong told a news conference. Enditem

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