May factory output falls 3.99% y-o-y, worse than forecast
published : 25 Jun 2019 at 10:31
updated: 25 Jun 2019 at 12:08
writer: Piyachart Maikaew and Reuters
Thailand's manufacturing production index (MPI) in May dropped 3.99% from a year earlier, dragged by lower production of cars and rubber products, the Industry Ministry said on Tuesday.
That compares with a forecast fall of 0.1% in a Reuters poll, and against April's 2.03% gain.
Capacity utilisation was at 67.72% in May, compared with 63.89% in April. April had fewer work days due to holidays.
Office of Industrial Economics (OIE) director general Nattapol Rangsitpol said the MPI has been affected by the escalating US-China trade war.
From November 2018 to April 2019, global trade shrank by 1.01%, and Thailand's MPI dropped by 0.63%, he said, but the MPI in May actually rose month-on-month by 8.63%.
That rise was was largely due to the April holidays.
The latest figures showed Industrial sectors such as chemical fertiliser, cars & engines, rubber, jewellery and hard disk drives were particularly hard-hit.
"Another factor was bearish demand from local consumers and overseas purchasing orders," he said.
Some sectors continued to perform well, including air-conditioners, palm oil, alcohol & non-alcoholic drinks and steel.
The OIE expects the MPI to rise 2-3% this year, after a 2.8% rise in 2018.