Key insights
- Thai factory output declined 0.36% year-on-year in April, missing forecasts due to Middle East conflict impacts and rising costs. The full-year outlook was revised down. Weaker Thai manufacturing and tourism, while seemingly isolated, can signal broader global demand softness, which could eventually weigh on US multinational earnings, albeit mildly.
BANGKOK, May 28 (Reuters) - Thailand’s manufacturing production index dropped 0.36% in April from a year earlier, the industry ministry said on Thursday, weaker than analysts’ forecasts.
-
The April reading compared with a year-on-year increase of 0.2% forecast in a Reuters poll, and followed a revised rise of 1.30% the previous month.
-
Thai factory output for the full year was seen up 1.0% to 2.0%, lower than the 1.5% to 2.5% range seen earlier.
-
Output fell due to the impact of the war in the Middle East and higher costs that put pressure on profits, the ministry said.
-
Tourism, a key economic driver, also weakened, impacting related industries.
-
For the first quarter output grew 0.94% annually, the ministry said.
-
The outlook for May should be higher if compared to a month-on-month basis, it said.