Thailand Manufacturing PMI2016-2021 Data | 2022-2023 Forecast | Calendar

The IHS Markit Thailand Manufacturing PMI increased to 49.5 in June 2021 from 47.8 a month earlier. Still, this was the second straight month of contraction in factory activity, amid the third coronavirus wave in the country. Output and new orders both fell for the second month running, albeit at slower rates. Meanwhile, a continued contraction of purchasing and hiring activities was recorded. At the same time, foreign demand continued to increase from the previous month though at a marginally slower rate from May. Elsewhere, the lengthening of delivery times continued, signaling continued supply constraints faced by firms. On the cost front, price pressures continued to build, with input price inflation climbing to a three-month high; while firms continued to share cost burdens with their clients by raising their own charges.

The IHS Markit Thailand Manufacturing PMI fell to 47.8 in May 2021 from 50.7 a month earlier. The latest reading marked the fourth monthly contraction in the first five months of the year, as the third wave of COVID-19 hit the economy, with output, new orders, and buying levels all falling. Meantime, foreign demand was sustained for a third straight month, with the pace of expansion accelerating slightly. The level of outstanding work and inventories of finished goods fell further, as pressure on production capacity waned. Firms noted that post-production inventories fell following a reduced need to build stocks. Meanwhile, supply chains remained affected by the pandemic, as suppliers’ delivery times lengthened for a second straight month. Cost inflationary pressures remained subdued, with cost burdens broadly unchanged from the previous survey period. Meanwhile, firms raised their output charges fractionally. Finally, confidence deteriorates further.

The IHS Markit Thailand Manufacturing PMI rose to 50.7 in April 2021 from 48.8 in the prior month. This was the first growth in the manufacturing sector since December 2020 and among the best reading during the past two years, boosted by the government's ability to control the recent wave of local COVID-19 infections. Production and new business both increased for the first time this year, spurred by a boost to exports. Also, the volume of inputs ordered rose for the first time in four months. This generated additional pressure on supply chains, and suppliers' delivery times lengthened the most in the survey history. Less positively, employment continued to fall, reflecting ongoing pessimism about the next 12 months. Meantime, inflationary pressures remained subdued despite rising demand for raw materials. Input prices rose for the seventh month running, but only marginally. That said, output prices increased for only the second time in 16 months.

The IHS Markit Thailand Manufacturing PMI went up to 48.8 in March 2021 from a seven-month low of 47.2 in February 2021. Still, this marked the third straight month of contraction in factory activity, with the latest reading remaining below its long-run trend level of 49.4. New export orders rose for the first time since February 2020; while output, new orders, and purchasing and input inventories all declined for the third month running. At the same time, firms cut workforces further, with backlogs of work broadly unchanged following a steep drop in February. As for prices, average input prices continued to increase, amid global supply shortages. In contrast, manufacturers left their own output prices unchanged since February, reflecting the weak demand environment. Lastly, confidence remained pessimistic, albeit less so than in January and February.