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4 stories mentioning ^SET.BKUpdated 11d ago

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Thailand's Foreign Reserves Rise in May

Thailand's international reserves rose at the end of May, quelling fears of a currency crisis.Foreign reserves rose to $287.5 billion in the week ended May 29, according to data released by the Bank of Thailand (BOT) on Friday.The reading was higher than $285.6 billion in the week ending May 22 and $287.2 billion in the week that ended April 24.The Thai baht logged the biggest current-account deficit on record in April at $7.6 billion, triggering concerns of a currency crisis, according to a Wednesday report on The Nation.Don Nakornthab, the Bank of Thailand's assistant governor of the monetary policy group, eased these worries, saying that energy imports and the government's work in sustaining fuel reserves drove the deficit bigger. He said Thailand would be unlikely to experience a currency crisis like Indonesia, the report said.This week, Indonesia's rupiah dipped to record lows, prompting its central bank to raise the seven-day reverse repo rate by 25 basis points to 5.5%. The rupiah slumped more than 8% against the U.S. dollar to a record 18,190 on June 8.Meanwhile, Thailand's central bank does not see the need to raise rates yet despite the risk of rising inflation. Earlier this month, BOT Governor Witai Rattanaporn signaled that the rise in inflation is temporary after benchmark rates were kept at 1% at the end of April.Official data showed inflation in May slowed, with the consumer price index rising 2.79% year on year, compared with 2.89% in April.However, on a general trend, growth across Asia is weakening, while inflation continues to grow. Monetary policies are being shaped by the widening gap in foreign exchange. A sustained strength in the U.S. dollar has also driven broad-based weakness across various Asian currencies, according to ING's head of research for Asia-Pacific, Deepali Bhargava."Central banks are likely to prioritize anchoring inflation expectations and stabilizing exchange rates, even as growth risks mount," Bhargava said. "As elevated oil prices continue to tilt inflation risks upwards, we expect most Asian central banks to raise rates in the third quarter."

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Asia18d ago

Thailand's Inflation Slows Down in May

Thailand's inflation growth eased in May despite fuel and commodity prices remaining high due to the war in Iran.The consumer price index rose 2.79% year on year, a slowdown from the 2.89% growth in April, according to data from the Trade Policy and Strategy Office.The reading missed the Bloomberg-surveyed analysts' median estimate of 3.1%.On a month-on-month basis, the CPI inched 0.17% higher.The major contributor to the rise in inflation was the oil price hikes, which were triggered by the Middle East war and the closure of the Strait of Hormuz. The situation is still surrounded by uncertainty as the U.S. and Iran have yet to strike a deal.The increase in fuel prices led to the rise in public transport fares, while the cost of living climbed as enterprises passed on increased costs to consumers. The prices of fresh vegetables also rose from a year earlier due to a low price base effect.A survey posted by S&P Global earlier this week showed that enterprises passed on rising manufacturing costs to consumers, leading to higher factory gate charges. This was in line with the country's manufacturing activity slowing down amid vulnerable consumer confidence over the ongoing conflict in Iran. The headline S&P Global Thailand Manufacturing Purchasing Managers' Index slipped to 52.6 in May from 52.7 in April.Thailand's trade deficit also widened $10 billion in April from $3.04 a year earlier as exports lagged behind imports, according to official data.The Bank of Thailand maintained its stance that it will not adjust its monetary policy due to the expected rise in inflation, as the increase could be temporary."This is because monetary policy is a demand-side tool, and therefore has limited ability to address supply-side problems," BOT Governor Witai Rattanaporn said in a press conference on Thursday, a day before the inflation rate data is released.The central bank kept benchmark rates at 1% at the end of April.

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US Markets21d ago

Thailand's Factory Activity in May Logs Weakest Growth in 12 Months

Thailand's manufacturing activity growth slowed to a 12-month low in May as consumer confidence remained fragile amid domestic and external pressures.The headline S&P Global Thailand Manufacturing Purchasing Managers' Index (PMI) slipped to 52.6 from 52.7 in April, S&P Global reported Tuesday.While the figure remains above the neutral 50 mark separating expansion from contraction, it represents the slowest pace of improvement since July 2025.The slowdown was largely driven by sluggish output volumes, which expanded at their weakest rate in a year. Although new orders accelerated slightly compared with the prior month, firms noted persistent consumer hesitancy regarding spending.According to a survey conducted by the University of the Thai Chamber of Commerce, the country's consumer confidence slumped to 50.6 in April from 51.8 in the previous month, the lowest in eight months.Similarly, data provider Ipsos reported that consumer confidence in the first half of the year plunged to near-pandemic lows. The decline was driven by mounting economic pressures and geopolitical tensions, particularly the outbreak of war in Iran, which has disrupted global supply chains."Rising energy prices, cost-of-living concerns and declining confidence are changing consumer behavior in profound ways. As concerns shift, spending, saving and brand choices change as well. Businesses and brands must adapt quickly," said Pimtai Suwannasuk, Ipsos' senior client officer.The Ipsos report, published in May, also highlighted that political corruption remains the absolute top concern among Thai consumers.Consumers face even more pressure as manufacturers pass on elevated raw material and transportation costs, S&P Global noted. As a result, factory gate charges increased even as overall input cost inflation stabilized.External uncertainties continued to strain business capacity, leading to a 10th consecutive month of backlog accumulation, yet manufacturers remain cautious about hiring additional staff.Despite these headwinds, business owners are broadly optimistic, with 21% of survey respondents forecasting a rise in production over the coming year."There were some positive signals for the near-term outlook. Manufacturers anticipate a rise in their output levels during the year ahead, with confidence the highest since February," S&P Global Market Intelligence economic director Tim Moore said.

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US Markets36d ago

Thai Economy Beats Forecasts in Q1 on Manufacturing, Stimulus Boost

Thailand's economy accelerated in the first quarter, driven by growth in manufacturing and exports, alongside government fiscal stimulus that helped cushion the fallout from ongoing Middle East tensions.First-quarter GDP expanded 2.8% year on year, faster than the 2.5% rise in the fourth quarter of 2025, according to Monday data from the National Economic and Social Development Council.The latest print beat the market consensus of 2.4%, as well as the 2.2% growth forecast by ANZ and analysts surveyed by Reuters."A key driver was an expansion in manufacturing," the NESDC said. "On the expenditure side, private final consumption expenditure continued to expand at a satisfactory pace, while government final consumption expenditure, gross fixed capital formation, and exports of goods and services accelerated."By sector, agricultural growth doubled to 1.2% from 0.6% in the previous quarter, while the non-agricultural sector expanded by 3%, accelerating from a 2.7% gain in the prior quarter. Within this segment, industrial growth doubled to 1.8% from 0.9%, while the services sector ticked up to 3.6% from 3.5%.Private final consumption expenditure rose 3.2%, supported by steady spending on semi-durable and non-durable goods.Public investment was another major driver for growth, following the government's approval of an emergency decree to borrow 400 billion Thai baht to cushion the economy against the macroeconomic impact of the U.S.-Iran conflict.As a result, general government final consumption spending climbed 3.4% on increased purchases of goods and services as well as social transfers in kind, the NESDC noted.Moreover, gross fixed capital formation expanded 9.9%, faster than the prior quarter's 8.1% increase."This pick-up is consistent with foreign investment in data centers and EV production," ANZ's analysts, Chief Economist Sanjay Mathur and FX Analyst Kausani Basak, said in a note. "We also believe that government policies, including the government's Fast Pass initiative, have played a supportive role."ANZ expects the government to introduce a new stimulus spending of 200 billion baht, along with the co-payment scheme, where the government will contribute 60% of approved consumer spending."Looking ahead, private consumption is expected to be supported by the co-payment scheme, which is set to begin in June," Mathur and Basak said. "The low-income households will benefit most from the scheme, although elevated prices may limit its effectiveness.ANZ raised its 2026 GDP growth outlook for Thailand to 2.4% from 1.6%.

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