Chairman of the Federation of Thai Industries (FTI), Payungsak Chartsutthipol, revealed that the TISI for December 2011 rose to 93.7 – up from 87.5 in November – due to the easing of the flood crisis in central Thailand.
He added that flood recovery is allowing many factories to resume operations, particularly in the auto-mobile industry.
The FTI chief also predicted that the index will rise to around 106.3 due to an increase in purchase orders and improved turnover.
However, Mr Payungsak added that business operators are still concerned about the impact of the global economic slowdown, high oil prices, exchange rates and uncertainty over Thai politics.
He went on to say that most business people agree with the suggestion that the government should speed up its economic stimulus actions after the floods, delay increasing the minimum wage and postpone energy price rises for the industrial sector.
They are also proposing that the Government keep the water management process fair, so as not to neglect either the agriculture or the industrial sectors.