The Manufacturing Production Index (MPI) is expected to increase in the second half of this year if four growing industries -- solar panels, solid state technology, smart electronics and electric vehicles -- are included in the MPI calculation, says the Office of Industrial Economics (OIE).
The adjustment in the calculation is being considered as the country continued to see a drop in the indicator in June, falling 1.7% year-on-year to 96.08 points.
During the first half of 2024, the MPI, which examines the health of the manufacturing sector, fell by 2.01% year-on-year to 97.83 points, with capacity utilisation standing at 59.1%.
If the new calculation is applied, together with such factors as the government's budget spending to boost the economy, the continual recovery of tourism and the tendency of export growth, the MPI is expected to increase by 1.5%, said Warawan Chitaroon, director-general of the OIE.
"The four industries have expanded since last year. Officials can include their manufacturing rates in the calculation of the MPI," she said.
The office is discussing with the National Economic and Social Development Council the new calculation, which will lead to the adjustment of the MPI, the GDP in the manufacturing sector and capacity utilisation.
Earlier the OIE revised down the 2024 MPI growth target, projected to increase by 0-1%, down from 2-3%.
GDP growth in the industrial sector was also downgraded to a range of 0.5-1.5%, down from 2-3%.
Mrs Warawan attributed the drop in the June index to various factors, including the impact of low-cost imports on the manufacturing sector.
Weak consumer purchasing power during the economic downturn, the high level of household debt as well as more expensive energy costs were also factored in.
In June, the automotive sector, especially in the pickup and motorcycle segments, continued to experience lower sales as banks tightened criteria in granting car loans for fear of non-performing loans.
The 18% decrease in car manufacturing affected the MPI this month.
The production of electronic parts and circuit boards also fell by 20% year-on-year in June due to sluggish domestic and overseas sales, especially those related to car manufacturing.