A survey carried out by the Bank of Thailand has discovered concerns over the soaring Covid-19 infections in the industrial sector, pressuring the supply chain and Thai exports.
The central bank's survey of business operators took place from July 1-20 and found manufacturers were very concerned about Covid-19 infections spreading into the industrial sector, leading to the temporary closure of some factories.
Business operators have been using "bubble and seal" measures and moving their production to other factories in an effort to contain the outbreak.
Chayawadee Chai-Anant, senior director of the economic and policy department at the central bank, said the institution plans to monitor the situation to analyse supply chain disruptions and any impact on the country's exports in the second half of the year.
Thai shipments showed strong growth in June, gaining 46.1% year-on-year, up from an 44.4% increase the previous month.
For the second quarter this year, the country's exports rose 36.2% year-on-year, up from 5% in the first quarter, said Ms Chayawadee.
The value of merchandise exports in June, after seasonal adjustment, continued to increase from the previous month. The recovery of demand among trading partners and the upward trend of the global electronics cycle supported export performance in several categories, particularly agricultural manufacturing, electrical appliances and electronics.
In addition, exports of steel accelerated as firms shifted to the export market amid weak domestic demand, she said.
However, the Thai economy in June continued to be affected by the third wave of the pandemic. Private consumption remained weak, despite a slight improvement following the relaxation of containment measures.
The tourism sector has not recovered as international travel restrictions remain. Public spending continues to support the economy, with expansions in both current and capital expenditure from the same period last year.
According to ttb analytics, a research house under TMBThanachart Bank (ttb), from April to July this year, infections were reported at 1,607 factories, including 67 large factories. Factory clusters are largely in the food, electronics and electric equipment, automotive and auto parts, rubber and textiles sectors. Of these sectors, there are 11,637 factories with 1.96 million employees, accounting for a market value of 8.87 trillion baht per year.
