The Office of Industrial Economics (OIE) revealed that the Manufacturing Production Index (MPI) in April slightly contracted by 0.36% compared to the same period last year, pressured by geopolitical issues and persistently high household debt. Meanwhile, the export sector continued to expand well. The overall growth for this year is forecasted at 1-2%.
Mr. Supakit Boonsiri, Director of the Office of Industrial Economics (OIE) disclosed that the MPI in April stood at 92.76, contracting by 0.36% compared with the same period last year. The industrial capacity utilization rate was 56.41%.
The main cause was a decline in foreign tourists affected by oil prices and a slowing global economy, along with ongoing Middle East conflicts that continue to pressure the global economy and Thailand’s industry. This has directly impacted production costs and the profitability of operators.
Another significant pressure is Thailand’s household debt, which remains high at 86.7% of GDP growth. This data reflects limitations on domestic purchasing power, which in turn affects industries directly linked to consumption, such as ready-to-drink milk, potato chips, ham, and sausages.
Nevertheless, the April MPI was still supported by government measures aimed at stabilizing the economy, particularly assistance to the transport sector through fuel subsidies and electricity price controls, which significantly reduced living costs and eased business cost burdens.
Furthermore, the industrial export sector continued to expand steadily. In April, exports reached $25,937 million, growing 27.5%. Excluding gold, weapons, tanks, and combat aircraft, industrial exports amounted to $24,404 million, up 29%, marking 22 consecutive months of growth.
Regarding the MPI outlook for the entire year, the OIE estimates growth of about 1-2%, despite ongoing challenges such as prolonged geopolitical issues, uncertainties in U.S. economic policy, and competition from imports. Positive factors include international trade, economic stimulus measures, and accelerated government budget disbursements.
The main industries positively impacting the MPI in April include:
Industries negatively impacting the index include other general machinery, which contracted by 12.86%, particularly air conditioners, as manufacturers slowed production due to reduced foreign orders amid economic uncertainty.
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