The Covid-19 outbreak caused the manufacturing production index (MPI) to dip by 4.15% year-on-year to 87.71 points in August, but the index kept growing during the first eight months of this year, the Office of Industrial Economics (OIE) reported on Wednesday.
Despite the pandemic's impact on the industrial sector in August, when infection rates were high and harsh lockdown measures in place, the MPI from January to August still showed growth, driven by incrased exports as a result of global economic recovery.
The export sector continued to expand for the sixth consecutive month, Industry Minister Suriya Jungrungreangkit said.
In August, exports of industrial products, excluding gold and weaponry, increased by 19.74% to US$16.4 billion while imports of raw materials, including chemical products and steel, expanded by 66.28%, according to the OIE.
Mr Suriya expects better economic prospects in the second half of this year as Covid-19 infections decrease amid higher vaccination rates.
The government is working with factory owners to prevent new infections, encouraging them to implement various measures, including bubble and seal.
The bubble and seal measure, for factories with more than 200 workers, aims at restricting the movement of employees. Workers stay in factories or travel only between their dormitories and workplaces.
Thongchai Chawalitpichaet, chief of the OIE, said new Covid-19 cases in factories, together with the global semiconductor shortage, affected manufacturing in August. However, key industries, including electronics, continued to grow.
Manufacturing of circuit boards and electronic parts increased by 12.45% year-on-year due mainly to growing demand from the home appliance, telecommunications and medical equipment sectors.
Rubber production increased by 12.06% year-on-year, following increased orders from China and more demand for rubber tyres.
Sugar production also rose by 47.07% year-on-year as manufacturers continued to produce more sugar although it was the off-season for cane crushing.