BANGKOK, Aug. 4 (Xinhua) -- Thailand's business sentiment rose for a second straight month to a four-month high in July, supported by the non-manufacturing index amid easing fuel costs and increased flight operations, data from the central bank showed on Monday.
According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) stood at 46.7 last month, slightly up from 46.1 in June, led by improvements in cost, performance, and investment sub-components.
The non-manufacturing index picked up across several sectors, particularly transportation and warehousing, where sentiment in costs and service volumes went up notably due to a decline in average retail fuel prices compared to the previous month, the central bank said in a statement.
Additionally, confidence among the hotel and restaurant sector grew sharply amid increased flight services operated by Middle Eastern airlines.
However, the non-manufacturing index remained below the 50-point threshold for the fifth month running, reflecting a continued decline in foreign tourist arrivals.
Meanwhile, uncertainty surrounding trade barriers and U.S. import tariffs weighed on business sentiment, causing the manufacturing index to soften across various sectors.
In the July survey, the three-month expected BSI jumped to 50.7 from 48.0 in June owing to gains, particularly in total order books and performance sub-components.
The expected BSI aligned with the manufacturing index, which improved across multiple industries. Meanwhile, the non-manufacturing index climbed across most sectors, with the hotel and restaurant sectors helped by the tourism season and optimism for a rebound in foreign tourists.
The reading was based on a survey of 641 respondents from large and medium-sized firms. ■
