Thailand’s factory output contracted by the most in 28 months in December, according to data released by the industry ministry on Tuesday, falling more than expected as a global slowdown dampened demand for Thai exports.
The industry ministry said that in December, the manufacturing production index (MPI) was at 93.89, down by 8.19% from a year earlier. The decrease was due to lower output of hard disk drives and plastic pellets.
In a statement, the ministry said that production in factories will likely decrease again in January due to weakening global demand and a high base.
“The impact of the global slowdown has come earlier than predicted,” said Siripen Kiatfuengfoo, a ministry official, at a news conference.
The ministry forecasts a 2.5%-3.5% increase in output in 2023, following a 0.62% gain in 2022.
