Thailand's business sentiment worsens in July

2/8/2024 6:05

        Thailand's business sentiment worsened in July, dragged down by a decline in confidence among the manufacturing sector, while that of the non-manufacturing sector remained stable, the central bank said on Thursday.
        According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) was recorded at 46.9 last month, down from 48.7 in June, primarily owing to decreases in total order books, production and performance's sub-components.
        The manufacturing index fell in most businesses, led by the rubber and plastic industries, which observed a dip in total order books and production after accelerating in the earlier period.
        Additionally, respondents in the automotive industry reported worsening sentiment from declining domestic sales on the back of lower consumer purchasing power, which resulted from tighter lending standards by financial institutions as well as increased competition for electric vehicles.
        Meanwhile, the non-manufacturing index remained unchanged, especially in the hotel and restaurant sectors, where businesses expressed more optimism in services, performance and total order books.
        The three-month expected BSI came in at 50.1 in July, down from 51.9 a month earlier, as the manufacturing index decreased in various sectors, notably automotive and steel industries, while the non-manufacturing index fell in nearly all sectors.
        The reading was based on a survey of 766 respondents from large and medium-sized firms.