Thailand Manufacturing PMI August 2023

In August 2023, the S&P Global Thailand Manufacturing PMI declined to 48.9 from July's 50.7, marking the first contraction in factory activity after a growth streak of 19 months. During this period, new orders experienced their most significant decline in nine months, and employment saw a mild reduction due to resignations and layoffs.

At the same time, output growth reached its lowest point in nearly two years, while purchasing activity increased at the slowest rate since June 2022, primarily due to concerns about the lack of growth in new orders. However, foreign sales were supported by improvements in demand from key export destinations.

On the cost front, input prices continued to decrease, albeit marginally, marking the second instance of declining average prices in almost three years. Nonetheless, businesses raised their selling prices significantly due to increased cost burdens stemming from previous rises in shipping costs and wages.

Looking ahead, business sentiment reached its highest level since June, with companies expressing optimism about the potential for improved economic conditions that could bolster demand in the future.