Thailand’s Manufacturing Expansion Hits 29-Month High in October
PMI rises to 56.6 as new orders accelerate despite weak exports
Thailand’s manufacturing sector registered its strongest growth in 29 months in October, with the headline Purchasing Managers’ Index reaching 56.6, up from 54.6 in September and marking a sixth consecutive month of improvement.
New business inflows surged at the sharpest pace in about two and a half years, driven largely by domestic demand, even as external orders continued to wane.
Production growth accelerated for a seventh month, prompting manufacturers to expand staffing to meet higher workloads and contributing to a record pace of back-log accumulation.
Finished-goods inventories declined for a fifth straight month as firms worked through orders more quickly than they were replenished.
Firms’ purchasing activity rose, though stocks of purchases continued to decline due to high utilisation and prolonged supplier delivery times.
While export orders remained in contraction, the rate of decline eased, underscoring that overseas demand is still soft but stabilising.
Business confidence climbed to a near-two-and-a-half-year high, with firms anticipating further growth in output over the next 12 months.
Economists noted that the robust domestic-driven growth and expanding workforce suggest the Thai manufacturing sector is poised for sustained expansion, although export weakness remains a limiting factor.
The results highlight Thailand’s industrial resilience amid global headwinds and reinforce the government’s efforts to stimulate manufacturing and technical capabilities as part of its broader economic strategy.
New business inflows surged at the sharpest pace in about two and a half years, driven largely by domestic demand, even as external orders continued to wane.
Production growth accelerated for a seventh month, prompting manufacturers to expand staffing to meet higher workloads and contributing to a record pace of back-log accumulation.
Finished-goods inventories declined for a fifth straight month as firms worked through orders more quickly than they were replenished.
Firms’ purchasing activity rose, though stocks of purchases continued to decline due to high utilisation and prolonged supplier delivery times.
While export orders remained in contraction, the rate of decline eased, underscoring that overseas demand is still soft but stabilising.
Business confidence climbed to a near-two-and-a-half-year high, with firms anticipating further growth in output over the next 12 months.
Economists noted that the robust domestic-driven growth and expanding workforce suggest the Thai manufacturing sector is poised for sustained expansion, although export weakness remains a limiting factor.
The results highlight Thailand’s industrial resilience amid global headwinds and reinforce the government’s efforts to stimulate manufacturing and technical capabilities as part of its broader economic strategy.
