Thai factory output unexpectedly drops in May, seen steady in June

Thai factory output unexpectedly drops in May, seen steady in June
FILE PHOTO: A labourer works at a garment factory in Bangkok, Thailand, May 30, 2016. Picture taken May 30, 2016. REUTERS/Athit Perawongmetha

BANGKOK : Thailand’s factory output unexpectedly dropped in May due mainly to supply shortages for manufacturing cars and some electronics products due to lockdowns in China’s major port cities, the industry ministry said on Wednesday.

Output is likely to be steady in June and recover next month as China’s restrictions ease, while increased domestic activity and tourism will also provide support, ministry official Siripen Kiatfuengfoo told a news conference.

In May, the manufacturing production index (MPI) contracted 2.11 per cent from a year earlier, weighed down by lower production of cars, hard disk drives, and plastic pellets, the industry ministry said.

That compared with a forecast 1.50 per cent rise in output in a Reuters poll and a yearly drop of 0.03 per cent in April, revised from a 0.56 per cent rise.

In May, car production fell 9.11 per cent from a year earlier, while hard disk drives slumped 29.7 per cent, and plastic pellets dropped 15.6 per cent, the ministry said.

However, annual production in oil refining and some electronics parts increased in May, it said.

Industrial goods account for about 80 per cent of total exports, which increased 10.5 per cent in May from a year earlier.

 

Source: Reuters