BANGKOK (Reuters): Thailand's manufacturing production index unexpectedly fell 1.54% in May from a year earlier due to lower car production and higher energy costs, the industry ministry has announced.
The figure compared with a forecast increase of 1.35% in May in a Reuters poll, and followed a downwardly revised annual rise of 2.69% in April, which was the first increase in 19 months.
Factory output for the January-May period dropped 2.08% from a year earlier. The ministry last month said it expected output to rise between 0% and 1% in 2024.
Car production dropped for a 10th straight month in May as purchasing power decreased because of high household debt, while energy costs increased, the ministry said in a statement.
Figures from the Federation of Thai Industries earlier this week showed car production fell an annual 16.2% in May.
The industry ministry said higher exports of industrial products, stronger tourism and government spending supported output.
Thailand's exports, a key driver of the economy, rose 7.2% in May from a year earlier, the biggest increase in four months, according to commerce ministry data.
Foreign tourist arrivals in 2024 up to June 23 reached 16.84 million, a 36% increase from the year earlier period, and the visitors had spent 795 billion baht ($21.6 billion), according to the tourism ministry.
Thailand recorded a current account surplus of US$0.7 billion in May, the Bank of Thailand said on Friday, after a small deficit in the previous month.
South-East Asia's second-largest economy continued to grow in May but the pace slowed from the previous month, the Bank of Thailand said in a statement.
The recovery of exports and manufacturing is likely to be slow, but higher tourism and government spending will continue to support activity, it said.
Exports rose 7.8% in May from a year earlier. Private consumption rose 0.3% in May from the previous month but investment dropped 3% on the month.
The central bank has forecast economic growth of 2.6% this year and 3% next year. Last year's 1.9% expansion lagged regional peers. - Reuters
