Thailand Manufacturing Sector Continues to Expand

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.

The S&P Global Thailand Manufacturing PMI rose to 57.4 in December 2025 from 56.8 in the prior two months, marking the highest reading since May 2023 and the eighth straight month of growth in factory activity. New orders surged at the fastest pace in a decade, fueled by marketing promotions and stronger domestic demand, driving output sharply higher. Also, purchasing activity accelerated, but inventories fell further amid strong output. External demand remained weak, with export orders contracting for the fifth month. Employment slipped marginally for the first time in nine months, adding to backlogs. On the cost side, input prices rose for a second month as raw material and semi-finished goods prices climbed, reflecting renewed supply-chain pressures after longer lead times. However, firms trimmed output prices to support sales. Finally, sentiment eased yet stayed well above average, underpinned by expansion plans and expectations of stronger economic conditions in 2026.

The S&P Global Thailand Manufacturing PMI edged up to 56.8 in November 2025 from 56.6 in October, marking the seventh consecutive month of growth and the fastest pace since May 2023. New orders rose at the quickest rate since data collection began in December 2015, contributing to another substantial increase in output. This was despite another drop in new export orders amid weak external conditions. In response to higher inflows of new work, manufacturers expanded staffing and purchasing activity. However, backlogs of work accumulated again, recording the second-sharpest increase on record, ranked just behind October. Business confidence strengthened to its highest level since April 2023 on hopes that business expansion plans and improvements in economic conditions will support higher sales in the year ahead. On the price front, average input costs rose for the first time since June, while output charges remained stable.