FX.co ★ Thailand Manufacturing PMI Shows Mild Contraction

The S&P Global Thailand Manufacturing PMI decreased to 49.9 in March 2025 from 50.6 in February, indicating a slight downturn in the manufacturing sector. There was a minor drop in new orders for the third consecutive month, reflecting weakened demand. Export orders have been consistently declining since September 2023. Consequently, manufacturers have been able to reduce their backlog for the first time since last November, leading to a reduction in workforce numbers for the third time in four months. Although the reduction in jobs was modest, it was the fastest rate of job cuts since March of the previous year. Moreover, both purchasing activity and inventory levels saw a decrease. Regarding pricing, input costs decreased for the second consecutive month, while the prices manufacturers charged for their products have fallen for the fourth month in a row. Despite the decline in new orders, business sentiment stayed robust, fueled by anticipated new product launches and effective business development strategies.