BANGKOK, Sept. 1 (Xinhua) -- Thailand's business sentiment rose in August as a rebound in foreign tourists supported the non-manufacturing sector, while the manufacturing sector improved on accelerated purchases to hedge against El Niño risks and strong external demand, data from the central bank showed on Tuesday.
According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) climbed for a third consecutive month to 49.8 in August, up from 46.7 in July, led by improvements in production, total order books, and performance sub-components.
The non-manufacturing index picked up in some businesses, notably the hotel and restaurant sectors, whose confidence rebounded above the 50-point threshold for the first time in five months, following a recovery in international tourists from China and Europe.
Furthermore, visitors from the Middle East gradually returned as airlines from that region expanded their flight operations, the central bank said in a statement.
Meanwhile, the manufacturing index went up, marked by the processed rubber industry, on front-load purchases to stockpile raw materials amid concerns over the impact of El Niño weather conditions on future output.
Sentiment in the plastic packaging sector also trended upward, alongside the food and beverage industry, where optimism rose across every sub-component thanks to sustained demand for both processed food products and pet food.
In the August survey, the three-month expected BSI remained broadly stable, edging down to 50.5 from 50.7 a month earlier as total order books and production sub-components declined.
The expected BSI aligned with the manufacturing index, which weakened across several industries, especially electronics, partly owing to concerns over uncertainty surrounding U.S. tariff measures.
Nevertheless, the expected index remained above the 50-point threshold for the ninth successive month, buoyed by the global electronics cycle.
The reading was based on a survey of 635 respondents from large and medium-sized firms. ■