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Thailand: MPI marks 10-month high
Thailand’s manufacturing production index (MPI) in January hit the highest level in 10 months with a 0.2% year-on-year rise to 107.99 points, driven by higher production volume in the automotive, air-conditioning and sugar industries.
The MPI increased for the fourth straight month in January, said Nattapol Rangsitpol, director-general of the Office of Industrial Economics (OIE).
“The economy is growing thanks to overall support such as the upcoming general election on March 24 and newly implemented megaprojects,” Mr Nattapol said.
He said a new government should boost business and investment confidence in the country.
“But the US-China trade war and strengthening baht remain concerns for Thailand because they are pressuring the global economy, trade and investment, as well as the country’s shipments,” Mr Nattapol said.
The volatile baht is lowering the profitability of Thai exporters, he said.
The OIE said the utilisation rate in Thailand’s industrial sector stood at 70.5% in January, marking the highest level in seven months.
The capacity utilisation rate is still performing at a high level because of demand for industrial products both domestically and overseas.
The OIE expects the country’s MPI in 2019 to expand by 2-3% from an index of 105.52 points in 2018, driven by full implementation of the flagship Eastern Economic Corridor scheme and new investment flows after the general election.
The office said automotive production in January rose by 8.1% year-on-year to 179,595 units.
Car sales in January grew by 17.3% to 78,061 units, but car exports during the month were down 0.6% at 81,583 units and shipment value fell 2.9% to 40.8 billion baht.
The air conditioner sector rose by 15.9% year-on-year last month on demand from local and overseas markets.
At home, the air conditioner market expanded by 23.8% for the period, while shipments gained nearly 10% on robust sales to Iraq, Vietnam and Indonesia.
The sugar industry rose 3.6% year-on-year in January as many sugar millers accelerated production before the 2018-19 sugar-crushing season ends in April.
Ittichai Patamasiriwat, deputy director-general of the OIE, said the capacity utilisation rate in January was driven by production in automotive, chemicals, electronics and tobacco sectors, with each flashing a rate higher than 70%.
“The positive sentiment is a good sign for Thailand’s industrial sector throughout 2019, and once the utilisation rate reaches 80% the OIE forecasts it will attract new investment and expansion flows in the country,” Mr Ittichai said.
Source: https://www.bangkokpost.com/business/news/1635722/mpi-marks-10-month-high