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Thailand consumer confidence 55.6 in Jul-23

- Thailand's consumer confidence declined to 55.6 in Jul-23 from the previous month's reading of 56.7, indicating a decrease in optimism among households.
- Despite a marginal improvement compared to the one-year average, the consumer confidence index remains significantly below the long-run average, signaling prevailing pessimistic sentiment among Thai consumers.

Thailand CPI inflation 0.38% y-o-y (consensus 0.6) in Jul-23

- Thailand's CPI inflation in July 2023 registers a year-on-year growth of 0.38%, slightly lower than the consensus forecast of 0.6%, indicating a moderate inflationary environment.
- This figure marks the highest inflation since May 2023 and is significantly below both the one-year and long-run averages, suggesting subdued price pressures in Thailand's economy.

Bank of Thailand: Aug-23

• The Thai monetary policy Committee unanimously agreed to a 25 basis points rate hike, aiming to foster long-term macro-financial stability, amidst continued economic expansion and uncertain global conditions.
• Despite short-term contraction in merchandise exports, the Committee anticipates the Thai economy to continue expanding due to expected pickup in external demand, buoyed by tourism and private consumption. However, the risk of deteriorating credit quality in certain vulnerable groups necessitates ongoing debt restructuring and targeted measures.
• Inflationary pressures, although declining due to temporary factors, are projected to rebound and stabilize within the target range. However, potential food price increases due to severe El Nino episodes represent an upside risk to this outlook. Future policy rate decisions will therefore be based on economic and inflation outlooks, along with a thorough risk assessment.

Thailand PMI manufacturing 50.7 in Jul-23

- Thailand's PMI manufacturing recorded a reading of 50.7 in July 2023, indicating a slight expansion in the sector, albeit at a slower pace than the previous month.
- The decline in the PMI can be attributed to various factors such as subdued global demand, supply chain disruptions, and challenges faced by businesses such as rising input costs and labor shortages.