Thailand’s business sentiment edges up in August

BANGKOK, Sept. 2 (Xinhua) — Thailand’s business sentiment edged up in August, thanks to improved confidence in the manufacturing sector, the central bank said on Monday.
According to the Bank of Thailand, the Southeast Asian country’s business sentiment index (BSI) was recorded at 47.1 last month, up from 46.9 in July, mainly due to increases in production and total order book components despite a decline in employment.
The manufacturing index increased, led by improved sentiment in the automotive, rubber and plastic sectors as production and performance sub-indices grew following a significant fall in the previous month, the central bank said in a statement.
However, respondents in other businesses expressed reduced confidence, given that most indices fell below the 50-threshold, signaling an uneven recovery within the manufacturing sector.
Meanwhile, the non-manufacturing index dipped across various businesses, primarily owing to worsening sentiment in the automotive and fast-moving consumer goods retail sectors as customers became more cautious about spending.
The three-month expected BSI dropped to 49.8 in August from 50.1 a month earlier, being below the 50-threshold for the first time in three years. The downtick indicated a worsening outlook, with the electronics industry being a major contributor to the manufacturing index’s substantial contraction since mid-2024.
The reading was based on a survey of 802 respondents from large and medium-sized firms. ■