BANGKOK, May 2 (Xinhua) -- Thailand's manufacturing sector contracted for the third time this year in April, mainly due to a decline in new orders amid subdued economic conditions and the impact of a late-March earthquake, a survey showed on Friday.
The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 49.5 last month, down from 49.9 in March, indicating the lowest reading in a year and a further deterioration 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.
The latest fall of the index was attributed to the steepest dive in new business since last April, along with a drop in export orders for the 20th consecutive month on the back of weak external conditions, S&P Global said in a statement.
Thai manufacturers were able to be working through backlogs, while a sharp fall in new orders signaled softer conditions in the coming months, said Jingyi Pan, economics associate director at S&P Global Market Intelligence.
Firms continued to express positive sentiment, with manufacturers particularly optimistic about the potential for increased output in the year ahead, Pan said.
She noted that manufacturers also marginally raised staffing levels to support operations in April, reflecting their confidence that production growth can be sustained. ■
