Thailand’s factory output falls 0.04% in February, below expectations

[BANGKOK] Thailand’s manufacturing production index dropped 0.04 per cent in February from a year earlier, the industry ministry said on Friday, weaker than analysts’ forecasts.

The February figure compared with a year-on-year increase of 2.4 per cent forecast in a Reuters poll, and followed a January rise of 1.64 per cent, revised upwards from 1.46 per cent

The petroleum industry contracted due to temporary maintenance shutdowns at some refineries, said Supakit Boonsiri, the head of the ministry’s industrial economics office.

The stronger baht and geopolitical uncertainties have pushed up logistic and energy costs, he told a news conference.

There was some support from holiday-related spending and an expansion of industrial exports, but the impact of the Middle East conflict needs to be monitored closely, he said.

The government is planning an oil tax cut, along with other support measures, to mitigate the impact of rising oil prices.

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Foreign tourist arrivals have dropped about 3 per cent so far this year.

The ministry expects the output index to rise by 1.5 per cent to 2.5 per cent this year, after a downwardly revised 0.38 per cent drop in 2025. The central bank unexpectedly cut its key interest rate last month to support growth.

South-east Asia’s second-largest economy grew 2.4 per cent last year, lagging regional peers. REUTERS