Thailand Manufacturing Sector at 10-Month Low

Thailand's S&P Global Manufacturing PMI edged down to 52.6 in May 2026 from 52.7 in the previous month, marking its lowest reading since July 2025 while remaining firmly in expansionary territory. Output continued to grow but at its slowest pace in twelve months, as firms reported greater client hesitancy. Moreover, supply chain pressures remained evident in May, with transportation disruptions cited as the primary factor behind longer delivery times for raw materials. In contrast, new orders rose at a faster pace, supported by robust sales pipelines, resilient underlying demand, and the positive impact of successful business development initiatives. On the pricing front, input cost inflation stabilized following April's sharp increase, while output charges rose only modestly as manufacturers continued to pass on higher raw material and freight costs to customers. Finally, business confidence strengthened further, extending its recovery from the 55-month low recorded in March.

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.