Thailand’s manufacturing sector maintained its growth momentum in May, albeit at a slower rate, according to a survey released on Thursday. The country’s manufacturing purchasing managers’ index (PMI) registered a reading of 58.2 last month, down from the record high of 60.4 recorded in April. Despite the slight dip, the PMI reading above 50 indicates that the sector is still experiencing expansion, marking the seventeenth consecutive month of growth.
S&P Global, the global financial services company, provided insights into the survey’s findings. The report highlighted that the expansion in the manufacturing sector was primarily driven by improved demand conditions. Additionally, incoming new orders for manufactured goods continued to rise, although the pace was slightly lower than the record set in April.
The survey also revealed that the manufacturing sector’s expansion was supported by robust demand, particularly from international clients. This positive trend not only bolstered growth but also helped alleviate cost pressures for Thai producers as supply limitations eased.
Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, acknowledged the ongoing expansion but noted a sharp decline in business confidence during May. Lingering concerns over the economic and political outlook were cited as the primary reasons for this decline. Despite the current growth trajectory, the sentiment among businesses reflects a cautious approach due to these uncertainties.
The survey’s findings indicate a resilient manufacturing sector in Thailand, driven by steady demand and a gradual easing of supply limitations. However, the decline in business confidence underscores the need for continued monitoring of the economic and political landscape to ensure sustained growth in the sector.