Thailand’s MPI rebounds in July after 3-month decline

MPI Up 1.79% year-on-year.

Thailand's industrial output grew in July after a three-month decline, driven by increased exports, a rebound in the tourism sector, and higher government spending.

The Manufacturing Production Index (MPI) surged by 1.79% year-on-year, reversing the previous month's 1.63% contraction. Key contributors to the growth included palm oil, air conditioning, and rubber-related products, although other sectors such as automobiles, electronics, and concrete products saw decreases.

However, challenges persist for the Thai industrial sector due to weak domestic demand, escalating production costs, high household debt, and rising interest rates.

The MPI for the first seven months of 2024 decreased by 1.48% compared to last year. Despite this, the Ministry of Industry's Office of Industrial Economics Deputy Director-General, Krit Chansuwan, anticipates the MPI to range between 0% and 1% by the end of the year.

This projection reflects ongoing market uncertainties and the need for continued governmental support to sustain the industrial sector's recovery.