Thailand’s manufacturing sector activity regained momentum in June, as factory output and new orders saw accelerated expansions, while business confidence strengthened further, a survey showed on Wednesday.
The Southeast Asian country’s manufacturing purchasing managers’ index (PMI) came in at 53.6 last month, rebounding from 52.6 in May to a three-month high, signaling a stronger improvement in overall operating conditions, according to S&P Global.
A PMI reading above 50 indicates growth in the goods-producing sector, while a reading below 50 reflects contraction.
New business inflows increased for a 14th consecutive month in June, driven by effective marketing strategies, new client acquisitions, and substantial order placements from existing clients, S&P Global said in a statement.
Consequently, production growth picked up at the close of the second quarter, with output volumes reaching their highest pace since December last year, the survey found.
Indicators on the demand side are pointing toward a favorable near-term trajectory, with heightened procurement efforts and accumulating backlogs also suggesting the sustained upturn, said Joe Hayes, senior principal economist at S&P Global Market Intelligence.
Hayes said a notably brighter signal emerged from the continued recovery of production expectations, which have bounced back from the near five-year low recorded in March, and from respondents collectively reporting robust sales outlooks.
However, supply-side pressures remain a concern, as staffing levels have shown minimal movement so far this year, though enhanced labor productivity could potentially mitigate such capacity limitations, he noted.
