BANGKOK, April 1 (Xinhua) -- Thailand's manufacturing sector contracted slightly in March due to a slowdown in output growth as incoming new orders dropped amid declining export demand, a survey showed on Tuesday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 49.9 in March, down from 50.6 in February, signaling a marginal deterioration in manufacturing sector conditions, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
Manufacturing production growth slowed to a near-neutral level in March as some manufacturers increased output to fulfill existing orders, while others decreased production owing to reduced new orders, S&P Global said in a statement.
The reduction in workloads resulted in renewed employment cuts among manufacturers as purchasing and inventory levels also fell in tandem, indicating a concerning trend, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
Business confidence remained strongly positive at the end of the first quarter, reflecting expectations for manufacturing production to expand in the next 12 months, Pan said. ■