Thailand’s manufacturing index rises on back of improving global economy

MONDAY, MAY 31, 2021

Thailand’s manufacturing production index (MPI) jumped to 91.88 in April, rising 18.46 per cent compared to the same period last year, Industry Minister Suriya Juangroongruangkit said on Monday.

“April’s MPI jumped due to an increase in exports owing to the improving global economy. The government’s economic stimulus campaigns have also helped create demands for the manufacturing sector,” he added.

“The third wave of Covid-19 [which kicked off in late March] has had no significant impact on the country’s industrial manufacturing sector and supply chain.”

Thongchai Chawalitphichet, director-general of the Office of Industrial Economics (OIE), added that the automotive industry has contributed the most to the expansion of MPI in April, expanding by 288.06 per cent year on year.

“This jump is due to the fact that last year, many manufacturers had to halt their production due to lockdown measures, especially in the production of pick-up trucks, small passenger cars and diesel-run vehicles,” he added.

“The production of beer also rose 515.18 per cent year on year because no lockdown measures were announced during this year’s Songkran festival.”

Manufacturing of air conditioners and components also recorded a 57.38 per cent rise year on year because many countries have eased their lockdown measures and are facilitating the export of products from Thailand.

Thongchai added that Thailand netted US$16.17 billion from the export of industrial products, expanding 45.69 per cent year on year and 13.09 per cent from March.

“This makes industrial exports in April the highest in the past 36 months, while products that saw a significant increase include cars, electrical appliances, electronic components, rubber products and chemicals,” he added.