Thailand factory growth holds firm despite moderation
Its Manufacturing PMI eased to 53.8 in August.
Thailand's manufacturing sector remained firmly in expansion territory in August, with businesses reporting sharp rises in both output and new orders even as the headline growth rate eased slightly from the previous month's peak, according to the latest S&P Global survey.
The S&P Global Thailand Manufacturing Purchasing Managers' Index (PMI) came in at 53.8 in August, down marginally from July's seven-month high of 54.2. Any reading above the neutral 50.0 mark denotes an overall improvement in operating conditions, and the latest figure pointed to a further solid strengthening in the sector's health over the month.
Production volumes rose sharply, with the rate of growth the second-fastest recorded so far this year. Output has now risen in every month since February 2025, with manufacturers attributing the latest upturn chiefly to improving demand and a run of new customer wins.
New business also grew at a strong clip, extending an unbroken run of expansion to 16 months.
The brighter demand backdrop did not translate into more jobs, however. Employment numbers edged fractionally lower even as order books strengthened and production requirements increased, adding to capacity pressures and contributing to a further moderate build-up of unfinished work during the month.
Purchasing activity rose for a third consecutive month, albeit only marginally. Stock-building of inputs appeared to stall after five months of expansion, whilst stocks of finished goods fell at their fastest rate since November 2024, with some manufacturers citing strategic price discounts aimed at clearing surplus post-production inventory.
Supplier performance held broadly steady, with delivery times little changed from the neutral 50.0 mark and at their most stable in nine months. Input costs also stayed relatively subdued, which fed through into the slowest rise in selling prices in five months.
Manufacturers struck an upbeat note on the outlook, with confidence in production growth over the coming year climbing to its highest level since January and remaining well above its long-term average. Firms pointed to improving sales pipelines, upcoming product launches and growing optimism over wider demand conditions.
Tim Moore, economics director at S&P Global Market Intelligence, said the data showed Thailand's manufacturers had kept up their "recent robust pace of expansion", with growth cooling only slightly from July's seven-month high.
He added that the PMI had signalled a sustained improvement in business conditions since May 2025, driven in the latest month by faster-than-average growth in both output and new business, alongside easing inflationary pressures that had helped lift confidence to its best level since the start of the year.
