The Thai central bank on Tuesday said that the Business Sentiment Index (BSI) in July has risen for three consecutive months to 42.9, with increase seen in almost all sectors except electrical appliances.

However the Bank of Thailand (BoT) said that the overall index and sector sub-indices were still below the 50-threshold, "which still reflects the low confidence amongst Thai respondents despite some signs of recovery."

The BoT report indicated that the BSI in the automotive sector rose above the 50 threshold for two months running.

Confidence in the manufacturing sector grew mainly from optimism in machinery and automotive sectors, partly due to the launch of new models at the recent motor show event, the BoT report said.

Confidence in the non-manufacturing sector also improved, partly due to improved confidence in transportation and construction sectors.

The sub-indices of hotel and restaurant and transportation sectors improved significantly due to domestic tourism stimulus packages.

However, the index of hotel and restaurant sector was still below the 50-threshold, showing that most respondents did not expect healthy business conditions, as revenue from domestic tourist spending cannot offset revenue lost from foreign tourists, the BoT report said.