Thailand's Manufacturing Sector Growth Slows In April As West Asia Conflict Bites

BANGKOK, May 5 (Bernama-Xinhua) -- Thailand's manufacturing sector expanded for a 12th successive month in April, but at a slower pace due to mounting cost pressures linked to conflict in West Asia, a survey showed on Tuesday, reported Xinhua.

The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 52.7 last month, down from 54.1 in March, marking a solid improvement in overall operating conditions and the joint-lowest reading since last July, according to S&P Global.

A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.

Production levels continued to climb in April, extending a growth streak that began in February last year, with firms citing efforts to keep up with rising inflows of new business, S&P Global said in a statement.

Despite the upturns in both output and new orders, momentum slowed owing in part to a squeeze on purchasing power among customers, the statement said.

The Thai manufacturing sector is starting to feel the impact associated with the conflict in West Asia, primarily through supply chain interruptions and increased input costs, said Phil Smith, economics associate director at S&P Global Market Intelligence.

Smith said after nearly two years of price stability, a sharp rise in oil and fuel prices has triggered inflationary pressures, subsequently driving up raw material and transportation expenses.

Despite robust production growth, stockbuilding efforts to counter further price spikes and supply disruptions likely provided some temporary support to output in April, signalling a potential future slowdown, he noted.  

-- BERNAMA-XINHUA