BANGKOK, July 27 (Xinhua) -- Thailand's industrial output extended its contraction for a third consecutive month in June, mainly driven by lower production in the automotive and petroleum sectors, official data showed on Monday.
The Southeast Asian country's manufacturing production index (MPI) fell 3.10 percent last month compared to a year earlier, marking the sharpest drop since last November, according to the Ministry of Industry.
The shrinkage was compounded by volatile energy and freight costs stemming from the protracted Middle East conflict as well as elevated inflation, which raised living expenses and strained purchasing power and domestic demand, the ministry said in a statement.
Despite that, recovering demand, particularly for consumer staples such as sugar, cleaning products, soap, and cosmetics, provided support, aided by the government's copayment stimulus and cost-of-living program, said Supakit Boonsiri, director general of the ministry's Office of Industrial Economics.
For the second quarter of 2026, the MPI dipped 1.79 percent year-on-year, with average capacity utilization at 57.47 percent.
Looking ahead, external factors warranted increased caution amid prolonged geopolitical tensions and uncertainty over U.S. import tariffs, though demand for electronics and technology-related goods continued to grow, Supakit told a news conference.
He noted that if the conflict widens to disrupt shipping through the Red Sea and the Bab el-Mandeb Strait, it would further raise logistics costs and supply-chain risk for Thai industries. ■
