Thailand’s Manufacturing Production Index Drops

BANGKOK (Reuters) – Thailand’s manufacturing production index dropped by more than expected 2.11% in December year-on-year, due to a slump in the automotive industry and weak consumption, the industry ministry reported on Friday.

The decline compares with a forecast fall of 0.50% for December in a Reuters poll and follows an annual drop of 3.58% the previous month.

Factory output decreased by 1.79% for the entire year of 2024.

Automotive Industry Decline

Thailand’s car production fell by 17.37% in December from a year earlier, marking the 17th consecutive month of decline due to reduced domestic sales and exports, according to the Federation of Thai Industries.

Production was also impacted by high production costs and the influx of cheap goods from China, as noted by Passakorn Chairat, head of the ministry’s industrial economics office, during a press conference.

Despite these challenges, production benefited from government stimulus measures and an increase in exports, he added.