Thailand's Industrial Output Falls in June Amid Weak Vehicle and Refining Production

Thailand's industrial output fell in June due to weaker vehicle and petroleum-refining production. The Manufacturing Production Index (MPI) dropped by 3.10% year on year to 94.99, according to the Office of Industrial Economics (OIE). Capacity utilisation stood at 57.61%, while energy prices and transport costs were affected by prolonged conflict in the Middle East.

The OIE attributed part of the decline in production to lower output from refineries, motor vehicles, and palm oil. However, domestic demand cushioned the impact, particularly for consumer and essential goods such as sugar, cleaning products, soap, and cosmetics. This was partly due to government measures under the Thais Help Thais Plus programme.

The OIE is set to accelerate an overhaul of its industrial indices to better reflect Thailand's current industrial structure and provide a clearer measure of the sector's potential and competitiveness.