The February 66 Business Confidence Index increased to 50 in 8 months. High production costs are still an obstacle.

The Bank of Thailand (BoT) revealed the Business Sentiment Index (REPORT ON BUSINESS SENTIMENT INDEX). In February 2566, the confidence index rose to the 50 level for the first time in 8 months. It was at 50.6 from 49.8 in the previous month according to confidence in operating results. orders and Employment has increased significantly. and an improvement in the confidence index in both the non-manufacturing and manufacturing sectors.

The number of foreign tourists continues to increase. This has a positive effect on the confidence of the non-manufacturing sector in almost every business category. Especially in the real estate group where confidence has improved in almost every aspect. Partly from Chinese investors who are gradually returning to transfer ownership of condominiums and the retail sector where confidence in operating results and orders has increased.

As for confidence in the manufacturing sector, although it is still below 50, which reflects worsening confidence, the index has increased. Continuously for the 2nd month following the increase in the index. In almost every business category Except for automotive production groups where confidence has greatly decreased It has dropped to below the level of 50 and pre-COVID (62 average) again due to confidence in new orders and operating results having dropped significantly. This is in line with confidence in export conditions which has also decreased significantly.

As for the confidence index in the next 3 months, it is quite stable at 56.2, similar to the previous month. The confidence of the non-manufacturing sector decreased in almost every component and in almost every business category. Meanwhile, confidence in the manufacturing sector improved from the previous month. This is mainly based on the confidence of the electrical appliances and electronics manufacturing group. The overall confidence index and almost every business category is still above the 50 level continuously. It reflects the confidence of most entrepreneurs who believe that their business will expand from now on.

For other confidence indexes Confidence in costs remains low and the economic situation remains highly uncertain. As a result, the liquidity confidence index both now and in the next three months has decreased and remains below 3, reflecting that the proportion of businesses facing tight liquidity has increased. Meanwhile, high production costs are the first major obstacle to business operations. This is the 50th consecutive month and the proportion of entrepreneurs who are concerned about costs increased this month. as well as low demand from the domestic market and the uncertainty of the economic situation is a growing concern. As for expected inflation over the next 18 months, it continued to decline to 12 percent from 3.7 percent last month.