Investing.com -- Thailand’s manufacturing sector continued to expand in May, though at a weaker pace, with production growth slowing to its lowest level in 12 months, according to data released Tuesday by S&P Global.
The S&P Global Thailand Manufacturing Purchasing Managers’ Index registered 52.6 in May, down from 52.7 in April. While the reading remained above the 50.0 threshold that separates expansion from contraction, it marked the slowest improvement in manufacturing performance since July 2025.
Output volumes rose at the weakest pace since May 2025, as manufacturers reported customer hesitancy and postponed spending decisions. However, new order intakes increased at a robust and accelerated pace, rebounding from the eight-month low recorded in April.
Manufacturers attributed the order growth to resilient demand conditions, strong sales pipelines, and successful long-term business development plans.
Employment levels remained broadly unchanged from the previous month, continuing the trend seen in 2026. Backlogs of work accumulated for the tenth consecutive month, though the pace of accumulation was the slowest since August 2025.
Purchasing volumes remained unchanged in May, ending an 11-month expansion period. Inventory levels were relatively stable, with stocks of purchases and finished goods both rising only fractionally.
Supply chain pressures persisted during the month, with delivery times lengthening marginally. Manufacturers cited transportation delays as the main factor behind longer wait times for raw materials.
Input cost inflation stabilized following a rapid spike in April. Manufacturers passed on higher raw material and transportation costs to customers, resulting in a marginal increase in factory gate charges.
Business confidence improved, with approximately 21% of surveyed manufacturers predicting a rise in production over the next year, while only 1% forecast a decline. This represented the highest optimism level since February.
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