Thailand's manufacturing sector accelerates growth in February

Investing.com – Thailand’s manufacturing sector showed stronger growth momentum in February, with the S&P Global Thailand Manufacturing Purchasing Managers’ Index rising from 52.7 in January to 53.5, according to data released on Monday.

The PMI measures manufacturing performance in areas such as new orders, output, employment, supplier delivery times, and inventory levels, remaining above the long-term average of 50.3. A reading above 50 indicates expansion.

In February, the pace of new orders accelerated, with manufacturers reporting new clients and increased demand. Production also picked up, growing at a solid rate that exceeded January’s growth.

Thai manufacturers increased procurement activities for the ninth consecutive month, driven by higher production demand, stronger customer orders, and efforts to replenish inventories. Inventory levels slightly declined during the month.

Employment decreased for the second time in three months. The reduction was modest but marked the largest decline since March 2024. Despite ongoing backlog growth for the seventh consecutive month, staffing levels were cut.

Input costs fell for the first time in five months, though the decrease was modest. Manufacturers passed these cost savings on to customers, leading to a third consecutive month of falling factory gate prices. The decline in output prices was the fastest since July 2020, though the overall decrease remained moderate. Finished goods inventories across the sector further declined.

Average delivery times for purchased inputs extended for the third consecutive month. Supplier performance deteriorated more sharply than since April 2025, but the overall impact remained moderate.

Manufacturers remain optimistic about the outlook for the next year, although expectations have softened compared to the end of last year. Companies expecting output growth cited positive sales forecasts.

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