Thailand’s business sentiment worsens in July

BANGKOK, Aug. 1 (Xinhua) — Thailand’s business sentiment deteriorated in July, weighed down by falling confidence in the manufacturing sector, while sentiment remained stable in the non-manufacturing sector, the central bank said on Thursday.

The Southeast Asian country’s business sentiment index (BSI) stood at 46.9 last month, down from 48.7 in June, according to the Bank of Thailand, driven mainly by declines in total orders, production and component performance.

The production index fell across most sectors, led by the rubber and plastics sector, which saw a decline in total orders and production after an acceleration in the previous period.

Additionally, automotive industry respondents noted a deterioration in sentiment due to a decline in domestic sales due to lower consumer purchasing power resulting from tightening lending standards by financial institutions, as well as increased competition in the electric vehicle market.

Meanwhile, the services sector index remained unchanged, especially in the hotel and restaurant sector, where businesses expressed greater optimism regarding services, results and total order books.

The three-month BSI was forecast at 50.1 in July, down from 51.9 a month earlier, as the manufacturing index fell across sectors, notably automotive and steel, while the services sector index fell across almost all sectors.

The reading was based on a survey conducted among 766 respondents from large and medium-sized companies.