Thailand's manufacturing sector expanded for a third successive month in July, thanks to a robust increase in production as new orders growth picked up, a survey showed on Friday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 51.9 last month, edging up from 51.7 in June, marking another improvement in operating conditions and the strongest upturn in nearly 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.
The growth was mainly attributed to incoming new orders, which rose at the fastest rate so far this year, bolstered by rising client interests and increased export demand, S&P Global said in a statement.
In response, Thai manufacturers ramped up purchasing activity and accumulated input stocks, along with lifting employment levels to meet rising workloads, which resulted in lower outstanding orders, the statement said.
The forward-looking future output index indicated confidence at its highest level in almost a year, pointing to continued output growth in the near term, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
"It was also positive to see the improvement in demand and business confidence translate to higher purchasing activity and inventory levels in July," Pan said.