BANGKOK, Jan. 5 (Xinhua) -- Thailand's manufacturing sector extended its growth in December 2025, reaching the sharpest rate in over two and a half years, driven by a surge in new orders despite subdued foreign demand, a survey showed on Monday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 57.4 last month, climbing from 56.8 in November, marking an eighth straight month of improvement in operating conditions, according to S&P Global.
A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.
Incoming new orders soared at the fastest pace in a decade on the back of marketing promotions and better underlying demand conditions, contributing to a substantial increase in production, S&P Global said in a statement.
In response, Thai manufacturers increased their purchasing activity at a faster rate, but robust demand led to a further depletion of pre-production inventories, the statement said.
Meanwhile, employment saw a marginal decline across the manufacturing sector for the first time in nine months, resulting in the accumulation of backlogged orders, the survey showed.
Forward-looking indicators suggested that output growth may continue into the opening months of 2026, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
Margin pressures intensified for Thai goods producers toward the end of last year, although the decrease in output charges is a positive sign for stimulating near-term demand growth, Pan noted. ■