Bangkok: The Office of Industrial Economics (OIE) revealed that the Manufacturing Production Index (MPI) for May 2025 was at 100.79, expanding by 1.88 percent from the same period last year. This is the second consecutive month of expansion, driven by the recovery of the automotive industry, continuous export expansion, and government economic stimulus measures. It is recommended that Thai entrepreneurs adjust to the uncertainty of the international trade policies of their major trading partners, which will cause the economy to contract.
According to Thai News Agency, Mr. Phasakorn Chairat, Director of the Office of Industrial Economics (OIE), highlighted that the capacity utilization rate was at 61.14 percent, indicating a return to increased production in the industrial sector. The automotive industry was a key contributor, expanding by 12.86 percent compared to the same period last year, supported by car deliveries at the Motor Show and various economic stimulus initiatives. Additionally, international trade showed growth, with total export value rising by 18.4 percent as businesses expedited exports to the United States ahead of anticipated tariff increases. Industrial goods exports, excluding specific items like gold and military equipment, expanded by 22.3 percent to reach 23,552 million US dollars.
Nevertheless, unclear US import tariff measures could decelerate international trade. Industrial confidence in May saw a decline due to factors such as a strong baht, foreign goods influx, and unresolved household debt issues affecting consumer spending. Moreover, the tourism sector experienced a slowdown, with concerns over safety following incidents like the call center gang and the March earthquake. Additionally, China's focus on domestic tourism and perceptions of Thailand being a costlier destination have deterred tourists.
For June 2025, the Thai industrial economic warning system signals a need for vigilance. Domestic factors show continuous slowing, reflecting industrial and business confidence affected by US trade policy uncertainties and geopolitical tensions. Externally, there is a need to monitor the manufacturing slowdown in Japan and the Eurozone, along with global trade dynamics.
Mr. Phasakorn emphasized the importance of addressing uncertainties stemming from geopolitical conflicts, US trade policies, and fragile domestic economies. He urged the government and Thai entrepreneurs to collaborate on strategic measures to maintain market share and competitiveness amidst these challenges.