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Thailand PMI Manufacturing 47.8 in Sep-23

- The Thailand PMI Manufacturing recorded a contraction with a value of 47.8 in September 2023, indicating worsening manufacturing conditions compared to the previous month.
- The PMI reading of 47.8 is significantly lower than the 1-year average of 52.05, signifying ongoing challenges and weakening of the manufacturing sector in Thailand.

Bank of Thailand: Sep-23

• The Committee's surprise decision to increase the policy rate by 0.25 percentage points underscores a proactive and cautious approach in navigating economic recovery and inflation concerns amidst prevailing uncertainties.
• The Thai economy is on a recovery trajectory, with projected growth of 2.8% in 2023 and 4.4% in 2024, influenced by internal and external demand dynamics, government policies, and international economic conditions. Vigilance over inflation dynamics remains paramount, considering potential pressures from government policies and environmental factors.
• The ongoing resilience and stability of the financial system are imperative, necessitating continued monitoring of credit quality and adherence to responsible lending and sustainable debt resolution strategies to mitigate risks and support economic recovery. Future monetary policy decisions will be data-driven.

Thailand consumer confidence 56.9 in Aug-23

- Thailand's consumer confidence increased to 56.9 in August 2023, reaching its highest level since February 2020.
- Despite this notable improvement, the score remains 18.60 points below the long-run average, indicating the need for further recovery to pre-pandemic levels of consumer confidence.

Thailand CPI inflation 0.88% y-o-y (consensus 0.7) in Aug-23

- Thailand's CPI inflation for August 2023 exceeded market expectations, reaching 0.88% year-on-year and marking the highest growth rate since April 2023.
- Despite this increase, both the headline and core CPI inflation rates remain below their respective average levels, indicating a relatively subdued level of price increases in the economy.