Better harvests in countries that compete with Thailand in rice and natural rubber like India and Indonesia have caused agriculture prices to fall. Most banks were unwilling to lend as they focussed on delinquent borrowers who have not paid up, thus causing private investments to lag. Nationwide, about 36.5 percent of loans have been delinquent for three months or more. The M1 measure of money supply, which measures cash in circulation, rose 7.5 percent from a year earlier. The broader M2 measure, which also counts savings accounts and other deposits, fell 0.1 percent.
Money supply is seen as an indicator of spending, inflation and the central bank's growth policy.
Thailand is due to report its consumer price data for June on July 4.