In September, Thailand’s Manufacturing Production Index (MPI) experienced a 6.06% year-on-year decline, reflecting the impact of weak exports due to sluggish global demand. This decrease exceeded earlier forecasts, and it followed a substantial 7.75% drop in August. The ongoing global economic slowdown, coupled with high levels of household debt, has hampered the country’s economic recovery.
However, the tourism sector has provided some support to the economy, particularly in terms of food product demand. From January to September, factory output saw a year-on-year contraction of 5.09%, even though industrial goods account for approximately 80% of total exports. Surprisingly, September saw a 2.1% year-on-year increase in total exports.
In response to the challenging economic conditions, the Industry Ministry has revised its MPI forecast for the year, projecting a decline of 4.0% to 4.5%, compared to the earlier estimate of a 2.8% to 3.8% drop.