According to a survey that was published on Monday, Thailand’s manufacturing sector expanded at a slower rate in March due to concerns over weaker demand as well as concerns over higher cost pressures.
According to S&P Global, the manufacturing purchasing managers’ index (PMI) for the country was recorded at 53.1 in March, down from 54.8 a month earlier, which is a signal of the first slowdown in growth since November of last year. This index measures the sentiment of purchasing managers in the manufacturing sector.
A reading of the PMI that is greater than 50 indicates that the manufacturing sector is expanding, whereas a reading that is less than 50 indicates that the sector is contracting.
According to Jingyi Pan, economics associate director at S&P Global Market Intelligence, the most recent decrease in demand for manufactured goods was supported by high inflation as price pressures reignited in March. This was the case despite the fact that the demand for manufactured goods had previously decreased.
In spite of the obvious risk of inducing too much of a slowdown in economic activity and, consequently, a downside risk to future growth, it is imperative that cost pressures be brought under control as a result of elevated input costs as well as inflation in output prices.
