Thailand’s manufacturing sector stabilized in October, survey results from IHS Markit revealed Friday.
The factory Purchasing Managers’ Index dropped to 50.0 in October from 50.6 in September. The reading signaled no change to business conditions at the start of the fourth quarter.
The survey showed a moderation in new order growth despite an increase in foreign demand. As a result, production grew at the weakest pace in a year and employment fell further.
Business confidence dropped to the lowest level since September last year as firms were worried about shrinking profit margins, subdued consumer spending and greater competition.
The survey brought signs that the coming months would be challenging for Thai goods producers in an environment of softening global trade and a stronger baht, Bernard Aw, principal economist at IHS Markit, said.
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