MPI increases for 15 straight months

MPI increases for 15 straight months

The Office of Industrial Economics (OIE) has reported the manufacturing production index (MPI) in July rose 4.64% year-on-year to 112.6, helped by growth in exports as well as consumer confidence and industry sentiment indicators.

The MPI in July increased for a 15th consecutive month, but contracted 3.01% from the figure in June.

Overall shipments from Thailand stood at US$20.42 billion (665 billion baht) in July, a year-on-year rise of 8.3%, with exports growing for the 17th consecutive month.

Important markets such as Japan, Europe, India and Southeast Asia performed very well, said Nattapol Rangsitpol, director-general of the OIE.

In addition, the consumer confidence index and Thai Industries Sentiment Index for July hit their highest points in 62 months.

For the first seven months this year, the MPI rose 4% year-on-year.

The overall utilisation rate in July stood at 67.2%, little changed from June's 69.1%.

"Many industrial sectors grew significantly, such as finished cars, auto parts, sugar mills, electronic parts, petroleum and rubber products," he said.

Mr Nattapol said the output of pickups, diesel engines and passenger cars under 1,800cc increased by 13.2% last month, in line with the country's healthy economy, a stimulated local car market with new models, and auto export sentiment.

As a result, auto production saw a 15.1% rise to 183,199 cars in July, with 58% of total output for pickups while passenger cars represented 40%.

Sugar output increased 82.3% in July because of a massive cane crop.

Electronic parts expanded 9.18% because of printed circuit board assembly and other integrated circuits in July, driven by global demand.

For petroleum, output grew by 14.2% in July because of demand for gasohol 95, jet fuel and bunker oil, with refineries speeding up their production to cater to the transport and industrial sectors.

"They will shut down some of their facilities in August, so they have to rush production," said Mr Nattapol.

"Benzene shipments also increased in July."

Rubber products grew by 9.82% last month as block rubber shipments gained because the latex volume produced was too much, which sent overall rubber prices down. But the cheaper prices also brought higher orders from Chinese buyers.

Domestic rubber distribution grew by 12.8% in July, while exports for the period rose by 20.5%.

However, auto tyres contracted as manufacturers are developing products to comply with a new regulation from the Thai Industrial Standards Institute.

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