BANGKOK, Jul 2 (NNN-TNA) – Thailand’s manufacturing sector expanded for the second consecutive month in Jun, due to strong growth in output and employment, amid slower falls in new orders, a survey showed, yesterday.
The country’s manufacturing purchasing managers’ index (PMI) was recorded at 51.7 last month, up from 50.3 in May, a signal of overall improvement in manufacturing sector performance, and the strongest pace of growth in a year, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
Manufacturers expanded both their workforces and purchasing activity at faster rates in June, as they increased capacity to address a sustained rise in backlogged work, S&P Global said, in a statement.
As output surged and employment grew at the fastest rate on record, declining new orders remained a challenge, but the trend showed signs of improvement, with the latest data signaling a near-stabilisation in demand, said Trevor Balchin, economics director at S&P Global Market Intelligence.
“Demand for inputs rose in tandem with higher output, but this boost to purchasing activity did not place pressure on supply chains or input prices, with both broadly stable since May,” Trevor said.
He also noted that, business confidence soared to its highest level since Apr, last year, as companies looked ahead to the next 12 months with optimism.– NNN-TNA