Tuesday, October 20, 2020

Business sentiment index rises for fourth month in a row

Sep 01. 2020
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By The Nation

The Business Sentiment Index (BSI) rose for a fourth consecutive month in August thanks to improved sentiment in the manufacturing sector.


The BSI rose almost 3 points, from 42.9 in July to 45.7 in August.

However, although the index signalled ongoing recovery, it was still below the threshold, according to the Bank of Thailand (BOT).

Meanwhile the 3-month expected BSI rose again to 50.9, above the 50-threshold for the first time since the Covid-19 crisis began, implying that future business confidence has improved.

The BSI rise in August was mainly due to stronger confidence from manufacturing, especially in the machinery and automotive sectors following recent launches of new car models. The index for the non-manufacturing sector remained relatively stable. 

While the hotel and restaurant sector benefited somewhat from the government’s tourism stimulus package, August’s index for the logistics sector fell after a sharp improvement last month. 

The 3-month expected BSI rose from 48.6 to above the 50-threshold, reflecting confidence that business conditions are improving. The 3-month index was driven up by growth in both the manufacturing and non-manufacturing sectors and from almost all components, especially production and total order books. 

Specifically, indices for the food & beverage and automotive sectors were above the threshold for three consecutive months. Moreover, indices for the electric appliance and electronic sectors significantly rose this month. These implied that

confidence of respondents in the manufacturing sector is recovering relatively well, the BOT said. For the non-manufacturing sector, the index increased in all businesses except for construction, whose index dropped for the second consecutive month because of lower construction volume given fewer property projects launched.

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