Factors Influencing the Movement of Business Confidence Index in Thailand

Abstract

This article aims to studies the factors influencing the movement of the business confidence index in Thailand. In this study, secondary data from the Bank of Thailand's report from January 2020 to December 2024 were used. The data were calculated using statistics in the form of linear regression equations using ready-made programs to test the hypotheses and to test the relationship between the independent and dependent variables. The factors studied were SET INDEX, CPI, BCI, FX, PI, LEI, MRR, M, and Business Confidence Index (BCI). The research results found that the independent variable CPI (β1 = 1.377) had a greater influence on the dependent variable than the other independent variables, followed by LEI (β4 = 0.631), FX (β5 = -0.529), PI (β2 = 0.101), and the variable with the least influence M (β7 = -2.948E-6), respectively. The independent variables that had the same effect on the Business Confidence Index were CPI, PI, and LEI, while the factors that had the opposite effect on the Business Confidence Index were FX and M. From the approximate test with the statistical value, R-Squares = 0.718, Adjust R-Squares = 0.692, indicating that the five selected independent variables, which were included in the equation to predict the dependent variable, could explain the movement of the dependent variable by 69.2 percent.