Thailand's manufacturing PMI hits eight-month low of 49.6 in July

Weak demand and sales deteriorate manufacturing conditions.

Thailand's manufacturing PMI hit an eight-month low of 49.6 in July, down from 50.4 in June, according to Nikkei Thailand.

“Decreased output volumes and stagnating new business weighed on the sector. Lower employment was reported and input stocks fell again. Foreign demand also dwindled, with new export sales reported unchanged. While manufacturers remained upbeat about the year ahead, optimism was well below the historical average. On the price front, input cost inflation eased to an 11-month low,” noted Nikkei.

IHS Markit economist Bernard Aw said, "Worsening operating conditions saw optimism among Thai manufacturers remaining well below the historical average. However, there are some panellists who expect that new sales strategies and improvements to productivity could boost output growth in the coming months."

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