Thailand's manufacturing sector expanded at a faster pace in March, though business confidence fell sharply amid the conflict in the Middle East, according to data released Wednesday by S&P Global.
The S&P Global Thailand Manufacturing Purchasing Managers' Index rose to 54.1 in March from 53.5 in February, marking a three-month high.
New orders increased at a faster pace, driving another strong rise in output. Firms reported higher order volumes and new client wins.
Backlogs of work rose again as demand outpaced production, while employment declined marginally for a second straight month.
Purchasing activity increased, though supplier delivery times lengthened, with vendor performance deteriorating to the greatest extent in nearly a year.
Business confidence weakened sharply, with year-ahead expectations falling to the lowest level since August 2021, as firms cited concerns over the impact of the Middle East conflict on demand and costs.
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