30-6-2023 (BANGKOK) Thailand’s manufacturing production index (MPI) showed a milder decline than expected in May, dropping by 3.14 percent compared to the same period last year, according to the industry ministry. The figure was better than the forecasted 4.5 percent decline in a Reuters poll. In April, output had contracted by a revised 8.71 percent year-on-year.
The Ministry stated in a press release that from January to May, the MPI had decreased by 4.49 percent compared to the previous year.
Earlier, the ministry had predicted zero to 1 percent growth in factory output for this year. Although exports continue to face challenges, the domestic demand has shown improvement, fueled by the resilient tourism sector and increased investments.
Industrial goods contribute to approximately 80 percent of the total customs-based exports, which experienced a lesser-than-expected decline of 4.6 percent in May compared to the previous year.
Despite the ongoing challenges, Thailand’s manufacturing sector is displaying some resilience with a smaller drop in the MPI and an uptick in domestic demand. The government’s focus on boosting investments and promoting tourism will play a crucial role in supporting the sector’s recovery in the coming months.
