Thailand
Thailand: MPI down again in June; capacity utilisation ebbs
The manufacturing production index (MPI) in June dropped 5.5% year-on-year, reflecting the downturn of the global economy and trade, says the Office of Industrial Economics (OIE).
The drop in June marked two months in a row of declines.
Aditad Vasinonta, the OIE’s deputy director-general, said the country’s output in June shrank for cars, auto parts, rubber, petroleum, hard disk drives and jewellery.
Second-quarter MPI was down 2.6% year-on-year, Mr Aditad said.
“For the petroleum sector, production in June was affected by a temporary shutdown for operations maintenance,” he said.
Palm oil, air conditioners, pharmaceuticals and drinks remained in healthy production during the month.
According to the OIE, the country’s capacity utilisation was 65.28% in June, down from 67.83% in May.
The office expects the MPI in 2019 to rise 2-3% from 2018.
The projection is based on GDP growth for the industrial sector of 2-3%, assuming full-year implementation of the flagship Eastern Economic Corridor (EEC).
The OIE has a big-picture outlook for the Thai economy to remain strong and continue to expand because the EEC scheme is likely to be carried out and the new government will increase overall investor confidence.
The office is monitoring the US-China trade war and its effects on Thailand’s economic and business sentiment. Officials plan to hold talks with related departments about the issue.
Source: https://www.bangkokpost.com/business/1721687/mpi-down-again-in-june-capacity-utilisation-ebbs