Thai May factory output falls 0.8% y/y, weaker than forecast
People work on rigid barrier food-grade packaging amid rising plastic prices linked to the U.S.-Israeli conflict with Iran, at EKA Global, a multi-layer rigid barrier packaging company, in Chachoengsao, Thailand, April 3, 2026. REUTERS/Athit Perawongmetha
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.
