BANGKOK, March 2 (Xinhua) -- Thailand's business sentiment increased in February due to improvements in the manufacturing sector, supported by higher demand for steel and robust growth in AI-related products, data from the central bank showed on Monday.

According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) stood at 49.6 last month, edging up from 49.1 in January, as total order books, employment, and investment subcomponents picked up.

The manufacturing index rose in most sectors, led by respondents in the steel industry, who reported stronger demand in both domestic and overseas markets, the central bank said in a statement.

Additionally, the electronics industry, particularly hard disk drives and semiconductors, gained confidence as demand for AI-related and data center products surged.

Meanwhile, the non-manufacturing index remained stable despite declines in most industries, led by sentiment in the retail trade sector, which fell below the 50-point threshold amid continued weak domestic purchasing power.

The three-month expected BSI came in at 52 in the February survey, down from 52.3 a month earlier, driven by drops in performance, investment, and total order books subcomponents.

The projected downtick was consistent with the non-manufacturing index, which fell across nearly all sectors, especially the hotel and restaurant and passenger transport sectors, owing to the transition into a tourism off-season, the central bank noted.

The reading was based on a survey of 677 respondents from large and medium-sized firms. ■