Thailand Manufacturing Growth at Near 2-1/2-Year High

The S&P Global Thailand Manufacturing PMI rose to 54.1 in March 2026 from 53.5 in February, signaling the strongest improvement in operating conditions since December. Growth was driven by a faster expansion in new orders, supported by larger client demand and new business wins, which in turn lifted output at a solid pace. However, demand continued to exceed production capacity, leading to a further buildup in backlogs of work. Firms responded by increasing purchasing activity, while input inventories rose slightly despite longer supplier delivery times, indicating some supply constraints. Employment declined marginally for a second straight month, suggesting cautious hiring. On the price front, input costs were broadly stable, while output prices were reduced slightly for the fourth consecutive month. Looking ahead, business confidence weakened sharply, with future output expectations falling to their lowest level in nearly four-and-a-half years amid concerns over the Middle East war.

The S&P Global Thailand Manufacturing PMI rose to 53.5 in February 2026, accelerating from a five-month low in the previous month. The growth was primarily driven by a strong increase in new orders, as businesses reported winning new customers and generally stronger demand. This, in turn, supported higher output, which expanded at a solid pace, faster than in the previous month. In addition, Thai manufacturers boosted purchasing for a ninth straight month, driven by higher production needs, stronger demand, and stock replenishment. Meanwhile, employment fell for the second time in three months, even as backlogs of work remained elevated. On the price front, input cost inflation declined for the first time in five months, while output prices rose at the fastest pace in over five-and-a-half years. Looking ahead, manufacturers remained optimistic about the year ahead, though expectations have softened from the highs recorded late last year.

The S&P Global Thailand Manufacturing PMI fell to 52.7 in January 2026, from a two-and-a-half-year high of 57.4 in December. It marked the lowest reading since August 2025, highlighting a softer pace of expansion in both output and new business, partly due to a further decline in new export orders amid subdued foreign demand. Despite the easing momentum, Thai manufacturers continued to increase staffing levels to cope with rising workloads. On the price front, average input costs rose for a third consecutive month, driven by higher prices for raw materials and semi-finished goods. In contrast, output charges fell again, at the fastest pace in nearly five and a half years, as intense competition and the need to offer discounts weighed on pricing power. Looking ahead, sentiment among Thai manufacturers remained upbeat in January, with firms expressing optimism that business expansion plans and improving economic conditions will help support sales growth over the year ahead.