Thailand's manufacturing sector expanded for a fifth straight month in September as a significant increase in new orders led to faster production growth, a survey showed on Wednesday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 54.6 last month, up from 52.7 in August, marking another improvement in operating conditions and the strongest pace since May 2023, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
New orders and output both grew at the fastest rate since May 2023, bolstered by effective business development efforts and improved underlying demand conditions, S&P Global said in a statement.
However, demand growth was limited to the domestic market, with new export orders falling for a second consecutive month and at the quickest rate since March, the statement said.
In response to increased workloads, Thai manufacturers raised their workforce capacity, resulting in the highest job creation rate in a year, while purchasing activity also expanded, the survey showed.
The expansion was primarily fueled by robust domestic demand in September, despite a more pronounced deterioration in external conditions, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
Forward-looking indicators suggest continued growth in manufacturing production in the near term, supported by rising confidence among goods producers, along with the sharp rise in new orders and backlog work, Pan said.