Thailand's manufacturing production index (MPI) in April fell for the first time this year, dipping to its lowest level in 12 months -- 95.91 points -- because of a sagging global economy and the US-China trade war denting Thai exports.
Both global and domestic economies have been weak, in part due to the trade war, which if prolonged would be manufacturers' worst-case scenario.
Aditad Vasinonta, deputy director-general of the Office of Industrial Economics (OIE), said the government has cut the country's industry GDP growth target to 1.5-2.5% this year from an expected target of 2-3%.
But the MPI index in April rose by 2.03% year-on-year.
"The OIE revised its MPI index for the first time this year following the global economic slump and economic indicators," Mr Aditad said.
Earlier this year, the OIE predicted 2019 industrial GDP growth of 2-3% from last year's MPI reading of 105.52 points, due to the Eastern Economic Corridor (EEC) project and investment growth after the general election.
The OIE reported that the MPI index in the first quarter of 2019 dropped by 1.1% to 109.88 points year-on-year. Last year the MPI index in the first three months was 113.13.
The capacity utilisation rate in April was 63.9%, the lowest level in 12 months.
But the ministry has a positive outlook as Thailand's economy remains strong overall and continues to expand, thanks to the EEC scheme and the eventual formation of a new government that will likely increase investor confidence.
The government is monitoring the trade war between China and the US and its affects on Thailand's domestic business. Officials plan to talk with related departments about the issue.
"The EEC is focused on new targeted industries, luring many investors and many industries to invest and expand their investments," Mr Aditad said.
The OIE reported that several industrial sectors were growing, such as beer and beverages (23.1%) and automotive (13.6%), thanks to growing demand in the domestic market.
Air-conditioner sales rose by 15.6% because of the hot season, contributing to demand growth in domestic and foreign markets.
Concrete sales rose by 10.3%, driven by repair and maintenance projects nationwide.
Non-alcoholic drink sales rose by 11.9% as producers launched new products.