Thai Dec Factory Output Contracts by 8.19% as Global Slowdown Hit Demand

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.