BANGKOK, May 28 (Xinhua) -- Thailand's industrial output contracted in April as the Middle East conflict and rising production costs continued to weigh on manufacturers' profits amid a decline in foreign tourist arrivals, official data showed on Thursday.
The Southeast Asian country's manufacturing production index (MPI) dipped 0.36 percent last month compared to a year earlier, reversing from a revised 1.3 percent increase in March, according to the Ministry of Industry.
Despite the downturn, Thai industrial exports maintained a robust trajectory, surging 27.5 percent year on year in April, said Supakit Boonsiri, director general of the ministry's Office of Industrial Economics.
Moody's has upgraded Thailand's credit outlook, a move that underscores the nation's macroeconomic stability and is expected to foster a more positive investment climate while strengthening business confidence, Supakit told a news conference.
For the 2026 outlook, the ministry downgraded its MPI growth forecast to 1 percent to 2 percent from the 1.5 percent to 2.5 percent expected earlier.
Supakit said the adjustment reflects mounting pressures from prolonged geopolitical tensions, uncertainty surrounding U.S. trade protectionism, high domestic household debt, and weak private consumption, alongside intensified competition from imported goods.
However, the Thai industrial sector still benefits from steady trade growth with major partners, government economic-stimulus measures, and accelerated fiscal budget disbursement, which should help sustain the sector going forward, he noted. ■
