Thai May factory output falls 0.8% y/y, weaker than forecast

BANGKOK, June 30 : Thailand's manufacturing production index dropped 0.8 per cent in May from a year earlier, the industry ministry said on Tuesday, weaker than analyst forecasts.

The May reading compared with a year-on-year decrease of 0.34 per cent forecast in a Reuters poll, and followed a revised fall of 0.94 per cent in the previous month.

• Factory output was weighed down by declining automotive production and elevated inflation, the ministry said in a statement.

• Car production dropped 17.94 per cent in May from a year earlier, according to the Federation of Thai Industries.

• Continuing geopolitical conflict affected energy costs, transport, and the procurement of some imported raw materials, pushing up manufacturing and logistics costs, the ministry said.

• Output was supported by government stimulus measures and stronger exports, it said.

• The ministry has forecast that factory output will rise 1.0 per cent to 2.0 per cent this year.

• Last week, the central bank left its key interest rate unchanged and raised its 2026 economic growth outlook to 2.3 per cent, with exports seen up 14 per cent.