Thailand’s Manufacturing Expansion Cools to Five-Month Low
The Southeast Asian nation's Manufacturing Purchasing Managers' Index (PMI) registered 52.7 last month, dropping sharply from 57.4 in December 2025, representing a ninth consecutive month of improved operating conditions yet the weakest growth rate in five months, S&P Global reported.
PMI readings exceeding 50 signal manufacturing sector expansion, while figures below 50 indicate contraction.
The deceleration in new business stemmed partially from another decline in export orders, as weakened international market conditions suppressed demand for Thai-manufactured goods, S&P Global stated in its release.
Nevertheless, accumulating order backlogs compelled manufacturers to expand their workforce, aligning with increased procurement activity as companies stockpiled additional raw materials to rebuild inventories, the statement indicated.
Robust domestic consumption supporting recent production increases and driving renewed hiring represented an encouraging development, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
Forward-looking metrics including new orders, unfinished work, and future output projections all suggested continued production growth in coming months, Pan explained.
She observed that despite escalating input costs, Thai manufacturers further reduced average sales prices, intensifying margin compression. The resulting profit impact will therefore require careful monitoring.
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