The Manufacturing Production Index (MPI) in Thailand contracted by 4.35% in January compared to the same period last year (YoY), according to the Office of Industrial Economics (OIE). The MPI for January was 99.82, continuing a trend of contraction that was expected due to weak external demand.
The OIE also reported that the capacity utilization rate (CapU) in January was 62.31%, up from 59.56% in December. The full-year 2022 average is expected to be 62.76.
The contraction in the MPI was largely due to weakening external demand, which has affected Thailand’s export sector due to the fragile global economy, particularly in trading partner countries such as the US and Europe. However, some industries that focus on the domestic market, including those related to tourism, have continued to expand, such as oil refining, automobiles, motorcycles, shoes, bags, and beverages.
The weakening external demand is a concern for Thailand, which relies heavily on exports to drive economic growth. In response, the government has been implementing measures to boost domestic consumption and reduce dependence on exports.