Bank of Thailand reports stable June activity as economy slows in second quarter

The Bank of Thailand reported that economic activity was broadly stable in June but slowed in the second quarter of 2026 from the previous quarter. The quarterly slowdown reflected higher energy prices and travel disruptions associated with the conflict in the Middle East, which weakened tourism, services and household consumption. Technology-related exports and data center investment continued to provide support, while government measures partly mitigated the pressure on activity. In June, private consumption and investment improved slightly, but tourism-related activity and manufacturing production declined. Headline inflation fell from May as energy prices eased, while core inflation continued to rise as higher costs passed through to prepared food and personal care products. The current account deficit narrowed and labor market conditions remained stable, although manufacturing employment warrants monitoring amid competitive pressures and rising production costs.