Manufacturing sector in Thailand edges closer to stabilization
The survey, sponsored by Nikkei and produced by Markit, has been conducted since December 2015 and provides an early indication of operating conditions at Thai manufacturing firms. The headline figure derived from the survey is the Purchasing Managers’ Index (PMI).
The PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
The downturn in Thailand’s manufacturing sector continued during August, as the headline PMI again posted below the 50.0 no-change mark. However, the latest reading was up from 49.3 in July to stand at a four-month high of 49.8.
This indicated only a fractional deterioration in Thai manufacturing operating conditions. Thai goods producers reported increased output in August, which ended a two-month sequence of contraction.
That said, the rate of expansion was only slight. Panellists cited the introduction of new products as a factor for higher production. August survey data pointed to stable new business intakes at Thai goods producers, ending a threemonth period of decline.
Meanwhile, new export orders rose during August, the seventh time this has been the case since data collection began last December. ■