BANGKOK, Aug. 3 (Xinhua) -- Thailand's manufacturing sector growth continued to accelerate in July, as output rose to its highest level so far this year, supported by stronger new order intakes, a survey showed on Monday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 54.2 last month, picking up from 53.6 in June to the fastest pace since last December, signaling an overall improvement in operating conditions, according to S&P Global.
A PMI reading above 50 indicates expansion in the goods-producing sector, while a reading below 50 reflects contraction.
The scaled-up inflows of new orders at the quickest rate seen in four months pointed to a broad improvement in underlying demand conditions facing Thai manufacturers, with surveyed firms reporting more customers and larger orders being placed, S&P Global said in a statement.
Signs of a healthy demand environment enabled businesses to improve profit margins as output prices climbed for a fourth month running despite little change in input costs, said Phil Smith, economics associate director at S&P Global Market Intelligence.
However, firms maintained a tight grip on overheads, with employment levels remaining largely stable despite a persistent build-up of work backlogs, Smith said.
He noted that business confidence has recovered further from March's low, but it remains below the point recorded around the turn of the year, possibly reflecting some lingering uncertainty about global economic conditions. ■