Economic data in July improved from the previous month, mainly attributed to exports and tourism, according to the Bank of Thailand.
The central bank on Friday reported the economic and monetary conditions for July, recording improvement after a slowdown the previous month.
The improvement was driven by rising external demand, reflected in both exports and tourism revenue, said Chayawadee Chai-anant, assistant governor for corporate relations group at the central bank.
In July, the number of foreign tourist arrivals after seasonal adjustment was 3.1 million, compared with 2.7 million the previous month. The increase was attributed to visitors from Malaysia, China, Russia and Europe, although the number of tourists from the Middle East and India declined.
Tourism revenue after seasonal adjustment rose based on higher average spending per visitor, especially by tourists from Russia and Germany.
The value of merchandise exports, excluding gold and adjusted for seasonality, grew 2.8% month-on-month, increasing in several categories. This increase was partly attributed to precautionary action against potential shipping delays in recent and upcoming periods, noted the central bank.
Export growth was supported by electronic products, agro-manufacturing products, and chemical and petrochemical products. However, exports of some products declined, including pickups to Australia, the Philippines and the Middle East, said Ms Chayawadee.
The manufacturing production index after seasonal adjustment increased from the previous month in several categories, with auto production rising to support near-term exports, which were affected by geopolitical conflicts in the Middle East.
The rubber and plastic sector also posted positive growth, while other sectors benefited from increased production of machinery, such as electric motors and transformers.
However, petroleum output declined after expanding the previous month, she said.
Ms Chayawadee said private consumption indicators in July after seasonal adjustment remained steady compared with the previous month. Spending on services rose, aligning with increased passenger transport activities.
However, consumer confidence continued to fall, driven by concerns over elevated living costs, slow economic growth and political uncertainty.
In addition, business sentiment regarding investment continued to decline, especially in the auto, real estate and retail sectors.
As for exchange rates, the baht appreciated against the US dollar based on weaker than expected US economic data and easing inflation, as the market now anticipates a Federal Reserve interest rate cut. The baht's appreciation was also pressured by rising gold prices, she said.
"The central bank monitors the baht's movement against the dollar, given the volatility of the local currency. We also see better management of foreign exchange risk among local business operators via hedging instruments," said Ms Chayawadee.