BANGKOK, June 2 (Xinhua) -- Thailand's business sentiment extended its downward trajectory as lingering tensions in the Middle East further weakened the manufacturing index, data from the central bank showed on Tuesday.
According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) stood at 42.5 last month, down from 43.5 in April, putting it well below the 50-point threshold across nearly all sectors.
The manufacturing index weakened, notably in the automotive sector, as production and performance sub-indices saw significant declines amid intensified competition in the vehicle market, the central bank said in a statement.
Additionally, surging packaging expenses and shipping delays from the Middle East, driven by persistently high freight rates, continued to weigh on the food and beverage industry.
Despite that, the non-manufacturing index held steady compared to the previous month, as respondents in the hotel and restaurant sectors reported a marginal gain in business confidence.
Meanwhile, subdued domestic purchasing power and constrained upstream supply conditions, especially in printing-related products and chemicals, hampered the trade sector's confidence.
The three-month expected BSI came in at 46.9 in the May survey, rebounding sharply from 40.9 a month earlier.
The central bank attributed the improved outlook to easing concerns over raw material shortages, despite high raw material price pressures, alongside government economic relief measures that were expected to boost domestic purchasing power.
The reading was based on a survey of 666 respondents from large and medium-sized firms. ■
