Corporate morale among Thai businesses recovered in August, with the headline Business Sentiment Index (BSI) coming in at 49.8 points, according to the latest survey data from the Bank of Thailand.

The reading was up from 46.7 points recorded in the previous month and beat Trading Economics' forecast of 47.2 points.

A reading above the 50-point threshold indicates overall optimism, while a figure below signals a deterioration.

The monthly momentum reflected improving sentiment in both manufacturing and non-manufacturing sectors, with the latter supported by a gradual return of foreign tourists.

Manufacturers benefited from stronger external demand and accelerated raw material purchases to manage El Niño-related risks.

The manufacturing index edged up, while the non-manufacturing index climbed, with the hotel and restaurant sector moving above 50 for the first time in five months as foreign tourist arrivals, particularly from China and Europe, recovered.