Thai factory output unexpectedly falls in May as car output down
THAILAND’S manufacturing production index unexpectedly fell 1.54 per cent in May from a year earlier due to lower car production and higher energy costs, the industry ministry said on Friday (Jun 28).
The figure compared with a forecast increase of 1.35 per cent in May in a Reuters poll, and followed a downwardly revised annual rise of 2.69 per cent in April, which was the first increase in 19 months.
Factory output for the January to May period dropped 2.08 per cent from a year earlier. The ministry last month said it expected output to rise between 0 per cent and 1 per cent in 2024.
Car production dropped for a 10th straight month in May as purchasing power decreased because of high household debt, while energy costs increased, the ministry said.
Figures from the Federation of Thai Industries earlier this week showed car production fell an annual 16.2 per cent in May.
The industry ministry said higher exports of industrial products, stronger tourism and government spending supported output.
Thailand’s exports, a key driver of the economy, rose 7.2 per cent in May from a year earlier, the biggest increase in four months, according to commerce ministry data.
Foreign tourist arrivals in 2024 up to Jun 23 reached 16.84 million, a 36 per cent increase from the year earlier period, and the visitors had spent 795 billion baht (S$29.3 billion), according to the tourism ministry. REUTERS
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