Manufacturing production in Thailand slid during the month of July, following slowdown in the country’s major industrial sectors. This came in contrast to market expectations, showing that the sector continues to struggle in the face of sluggish exports and domestic demand.
Thailand’s Manufacturing Production Index was down 5.1 percent from a year ago in July, compared with a revised 1.37 percent year-over-year increase in June, data released by the Office of Industrial Economics at the Ministry of Industry showed Tuesday. Sequentially, Thailand's MPI decreased 5.58 percent, accelerating its decline from a revised 1.93 percent drop in June.
According to a breakdown of the data, Thailand's vehicle production fell 8.41 percent on-year on lower assembly of pick-up trucks, while apparel and textile production plunged 24.62 percent from a year ago in July as a result of a slowdown in major destinations such as Japan and Europe.
In addition, production of plastic and rubber products dropped 17.17 percent and 12.05 percent respectively, in July. Meanwhile, the country's capacity utilization, which measures industrial slack, dropped to 62.34 percent in July from a revised 66.7 percent in June.
