Thailand Business Sentiment Hits Four-Month High in July

The Bank of Thailand reported that the national business sentiment index reached a four-month high in July, climbing to 46.7 from 46.1 in June. This growth was primarily fueled by the non-manufacturing sector, with significant gains in transportation, warehousing, hotels, and restaurants. This rebound was supported by a decrease in retail fuel prices and an increase in flight operations conducted by Middle Eastern airlines.

Despite the upward trend, the non-manufacturing index has stayed below the 50-point threshold for five consecutive months, a stagnation attributed to a decline in foreign tourist arrivals. Meanwhile, the manufacturing sector faced headwinds as uncertainty regarding U.S. import tariffs and trade barriers weighed on sentiment.

Looking toward the future, the three-month expected business sentiment index rose to 50.7. This projection reflects growing optimism among firms for a rebound in foreign tourism and a recovery in total order books.