BANGKOK, Feb. 3 (Xinhua) -- Thailand's manufacturing sector experienced a slight downturn in January due to lower output and new orders, while employment stayed broadly stable, a survey showed on Monday.

The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 49.6 last month, down from 51.4 in December 2024, signaling an overall deterioration in manufacturing sector performance and the first overall contraction since April, according to S&P Global.

A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 reflects contraction.

The decline in new orders should be viewed in the context of December's solid increase and was only the second reduction of the past seven months, said Trevor Balchin, economics director at S&P Global Market Intelligence.

"Reflecting this recent trend, the volume of outstanding business continued to rise in January, albeit only marginally," Balchin said in a statement.

The level of incomplete work rose for the eighth time in nine months in January, despite a decline in new orders. The continued hiring freeze has contributed to higher backlogs, with overall employment in the sector remaining largely unchanged for the second consecutive month, he said.

Although Thai manufacturers reduced purchasing and inventories further, they were more positive about the growth of output over the next 12 months, expecting rises in customers and repeat orders from existing clients, the survey showed. Enditem

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