BANGKOK, June 2 — Thailand’s manufacturing sector maintained its expansionary trend in May, driven by a solid increase in new order intakes, despite output growth easing to its weakest in one year, a survey showed on Tuesday.
The Southeast Asian country’s manufacturing purchasing managers’ index (PMI) came in at 52.6 last month, edging down from 52.7 in April, marking the weakest improvement in overall operating conditions since last July, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
Manufacturers highlighted the resilience of underlying demand, supported by robust sales pipelines and the sustained impact of strategic long-term business development initiatives, S&P Global said in a statement.
However, the pace of expansion lost momentum in May and remained notably softer than the rates recorded at the end of last year, as client hesitancy reportedly weighed on demand growth across both domestic and export markets, said Tim Moore, economics director at S&P Global Market Intelligence.
Moore said supply chain pressures persisted, with manufacturers citing transportation delays as the primary reason for longer raw material delivery times, encouraging another round of stock building.
Some positive signals emerged for the near-term outlook, as manufacturers anticipate a rise in output levels during the year ahead, with business confidence reaching its highest level since February, he noted. (Namibia Daily News/Xinhua)
