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Thailand: Rising exports fuel uptick of MPI in April
Thailand saw its manufacturing production index (MPI) increase in April by 18.46% year-on-year to 91.88 points, however, capacity utilisation decreased due in part to the impact of the third wave of Covid-19.
The rise of MPI was partly attributed to increased exports in April as well as global economic recovery due to Covid-19 vaccine rollout in many countries, according to the Office of Industrial Economics (OIE).
“Vaccines are the main factor that boosts people’s purchasing power and economic confidence. This was well-reflected in the increase of Thai exports,” said OIE chief Thongchai Chawalitpichaet.
The MPI in April also fared better than the same period last year when the government imposed complete lockdown measures to curb the spread of the virus. Many factories, including car assembly plants, had to temporarily shut down manufacturing operations during this period.
However, by April 2021, the car industry became a key factor linked to an increase in the index.
According to OIE, car manufacturing soared by 288.06% year-on-year this month as the sector did not have to deal with the same lockdown measures as in April 2020.
Beer manufacturing also increased by up to 515.18% year-on-year because the government decided not to enforce lockdown measures across the country but instead chose to impose strict measures to curb infections in risk areas.
People have been allowed to consume alcohol at home.
Moreover, beer exports in April also increased, said OIE.
Meanwhile, air conditioner manufacturing also increased by 57.38% year-on-year due to product development and sales campaigns.
The OIE expects the MPI to keep on increasing in May due to similar factors.
However, capacity utilisation in April decreased to 59.58%, down from 70.65% in March, because the third wave of Covid-19 infections hit the domestic economy around early April.
Also, the OIE added that in April, there were many holidays, including Songkran.
Industry Minister Suriya Jungrungreangkit is optimistic about global recovery which will continue as many countries, including Thailand, are backing inoculation programmes to boost economic confidence.
“The government has already set a goal to administer vaccines to most people in the country by 2021, so the ministry believes the economy will recover and boost the manufacturing sector,” he said.
Source: https://www.bangkokpost.com/business/2124655/rising-exports-fuel-uptick-of-mpi-in-april