BANGKOK, March 2 (Xinhua) -- Thailand's manufacturing sector regained growth momentum in February, mainly due to a solid expansion in both output and new order inflows amid a renewed decline in employment, a survey showed on Monday.

Workers work at the Great Wall Motors (GWM) manufacturing plant in Rayong, Thailand, January 12, 2024. (Photo: Xinhua)

The Southeast Asian country's manufacturing purchasing managers' index (PMI) came in at 53.5 last month, slightly quickening from 52.7 in January, marking a strong improvement in overall 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.

Thai manufacturers expanded their purchasing activity for a ninth consecutive month in February as a result of increased production requirements, higher customer demand, and efforts to replenish stocks, S&P Global said in a statement.

Despite elevated backlogs of work, firms recorded a marginal decrease in employment for the second time in three months, the survey noted.

The reduction in staffing capacity reflected cost considerations, with firms apparently seeking to lower output prices to secure more business, said Phil Smith, economics associate director at S&P Global Market Intelligence.

The outlook for the Thai manufacturing sector remained positive, signaling confidence in future demand, though firms have revised their growth forecasts down from the particularly high levels seen at the end of last year, Smith said.