Thailand’s Manufacturing Sector Books Best Month for a year in June

Thailand’s manufacturing sector saw the strongest improvement in business conditions for a year in June, with output and employment rising strongly from May’s levels, the S&P Global Thailand Manufacturing Purchasing Managers’ Index (PMI) showed on 1 July.

The headline PMI increased from 50.3 in May to 51.7 in June, the highest in 12 months, according to the survey S&P Global compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.  

Output in Thailand’s manufacturing sector rose at the fastest pace since May 2023, while the trend in new order volumes showed additional signs of stabilisation, S&P Global said.  

Both output and employment in the sector increased at a fast clip, while slower falls were registered for new orders and stocks of purchases, all of which lifted the headline figure in June compared to May. 

Manufacturers expanded both their workforces and purchasing activity at faster rates – the former at a series-record pace – as they raised capacity to address a sustained increase in backlogged work, the S&P Global survey showed.  

Moreover, Thailand’s manufacturing sector became increasingly confident of output growth over the next 12 months, with expectations at the highest level since April 2023. Sentiment improved to a 14-month high and remained above the pre-pandemic trend.    

“Thailand’s manufacturing sector experienced its best month for a year in June, with output growth accelerating and employment rising at the fastest pace on record,” Trevor Balchin, Economics Director at S&P Global Market Intelligence, said.  

“Demand for inputs rose in tandem with higher output, but this boost to purchasing activity did not place pressure on supply chains or input prices, with both broadly stable since May,” Balchin added.