BANGKOK: Thailand's manufacturing production index dropped 0.04% in February from a year earlier, the industry ministry said on Friday, weaker than analysts' forecasts.
The February figure compared with a year-on-year increase of 2.4% forecast in a Reuters poll, and followed a January rise of 1.64%, revised upwards from 1.46%.
Petroleum production declined due to temporary maintenance shutdowns at some refineries, and car production slowed, said Supakit Boonsiri, the head of the ministry's industrial economics office.
* Output in March is expected to increase slightly, supported by higher production of air conditioners, fans and beverages during the summer, he told a news conference.
* Geopolitical uncertainties have pushed up logistic and energy costs, and the impact will be felt more in the coming months, Supakit said.
* There was some support from holiday-related spending and an expansion of industrial exports, but the impact of the Middle East conflict needs to be monitored closely, he said.
* The government is planning an oil tax cut, along with other support measures, to mitigate the impact of rising oil prices.
* Foreign tourist arrivals have dropped about 3% so far this year.
* Supakit said the ministry will review its 2026 output index forecast in May. It currently projects a ruse of between 1.5% and 2.5%.
* The central bank unexpectedly cut its key interest rate last month to support Southeast Asia's second-largest economy, which grew 2.4% last year, lagging regional peers. - Reuters
