Thailand Manufacturing PMI Slips to 3-Month Low

Thailand’s S&P Global Manufacturing PMI fell to 52.7 in April 2026 from 54.1 in the previous month, marking the lowest reading since January but still marking a 12th straight month of expansion in factory activity. Both output and new orders grew at a slower pace, reflecting pressure on purchasing power. Also, buying levels moderated as firms cautiously supported production. Employment was broadly steady after slight declines in the prior two months, even as backlogs rose more sharply. Supply chains showed strain amid geopolitical tensions. On prices, input costs climbed at the fastest rate since September 2022, driven by surging oil, fuel, transport, and raw material prices linked to the Middle East conflict. Firms raised selling prices for the first time in eight months, with output price inflation hitting its strongest since January 2024. Finally, business confidence improved slightly but remained subdued, weighed down by rising costs and demand risks.

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.