Thailand’s manufacturing sector declined in April for the first time since last November, as growth in new orders and production fell.

The Nikkei-Markit manufacturing purchasing managers’ index for Thailand stood at 49.8 in April, down from 50.2 in March (50 indicates expansion). Business conditions for the country’s manufacturing sector were described as “broadly stagnant”, with business confidence “remaining subdued”.

Growth in new orders slowed to a five-month low amid “declining customer demand”.

Bernard Aw, an economist at the IHS Markt group, said: “Subdued client demand placed less pressure on operating
capacity. In fact, Thai manufacturers indicated a decline in backlogs — despite lower staff numbers — pointing towards the presence of excess capacity in the sector.

“Meanwhile, the stagnation in Thailand’s manufacturing sector was accompanied by an easing in inflationary pressures, with reports of slower increases in input costs and output prices. Moreover, there were signs that future output will remain subdued, with Thai goods producers signalling the lowest level of business confidence in the survey’s history.”