Business sentiment inched up for the second straight month in December as executives and business owners became more upbeat about higher government spending and investment, continued growth in tourism and exports, and the promised general election.
The Thai Chamber of Commerce (TCC) confidence index, which gauges nationwide business sentiment, rose to 48.4 points in December from 48.3 in November, 48 in October, 48.4 in September and 49.8 in August.
August confidence had marked a four-month high after 48.6 in July, 48.4 in June and 47.7 in May, the month the survey debuted.
The index sampled 332 TCC members nationwide, from every region, spanning the agricultural, industrial, trade and service sectors.
Sauwanee Thairungroj, president of the University of the Thai Chamber of Commerce (UTCC), attributed the slight increase to business leaders feeling that the economy improved only in Bangkok and the central region. Meanwhile, the provincial economy in the Northeast, South and North remains in relatively poor condition because of low crop prices.
"Overall business sentiment in December was shored up by government spending and investment, continued gains in tourism and exports, clarity on the election date and relatively low energy prices," Ms Sauwanee said.
Negative factors included the recent hike in the central bank's policy rate, low rubber and oil palm prices, inactive private investment and border trade, foreign exchange volatility, and tepid consumer confidence.
The UTCC reported earlier this month that consumer sentiment fell for a fourth straight month in December as the public fretted over the impact of the deepening US-China trade row and uncertainty surrounding Thailand's political situation.
The consumer confidence index dipped to 79.4 in December from 80.5 in November, 81.3 in October, 82.3 in September and 83.2 in August.
Kalin Sarasin, chairman of Thai Chamber of Commerce, said foreign investors would appreciate the government coming up with a precise election date.