People looks at Samsung air conditioners displayed for sale at a home improvement store in Bangkok on August 1, 2025. (Photo by Chanakarn Laosarakham / AFP)
Bangkok: Thailand's business sentiment plunged in July due to deterioration in both the manufacturing and non-manufacturing sectors, data from the central bank showed on Friday.
According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) was recorded at 45.8 last month, down from 48.6 in June, as all components, particularly production and performance, declined.
The manufacturing index decreased across several sectors, led by export-related industries, due to the implementation of U.S. tariffs, effective on Friday, the central bank said in a statement.
Despite an extension of the grace period, the minimum 30-day shipping time to U.S. ports prevented many firms from delivering goods on time, resulting in a significant drop in production subindices.
The non-manufacturing index fell in most businesses, especially the trade sector, where respondents' confidence dropped across almost every component owing to weakened purchasing power.
The three-month expected BSI came in at 47.9 in July, down from 49.5 a month earlier, remaining below the 50-point threshold for the fourth straight month on the back of contraction in all components.
The reading was based on a survey of 708 respondents from large and medium-sized firms.
