Thailand’s manufacturing production index edged down 0.08% year-on-year in October, according to the Ministry of Industry on Friday, better than analyst expectations for a deeper decline. A Reuters poll had projected a 0.6% contraction, while the previous month saw a revised annual increase of 1.19%.
Despite the comparatively mild downturn, the ministry cited several challenges weighing on industry sentiment. Ongoing U.S. trade policy continues to pressure Thailand’s industrial and processed agriculture sectors, causing industrial confidence to wane. Furthermore, the country’s tourism sector has experienced a persistent decline in international arrivals, adding another layer of strain to broader economic performance.
For the full year, the Industry Ministry maintains its outlook for a 0.75% contraction in factory output but forecasts a rebound in 2026, expecting growth in the range of 1% to 2%.
