BANGKOK, Aug. 27 (Xinhua) -- Thailand's industrial output expanded for the first time in four months in July, mainly supported by demand for technology products on the back of the artificial intelligence (AI) and data center boom, official data showed on Thursday.
The Southeast Asian country's manufacturing production index (MPI) rose 0.46 percent last month compared to a year earlier, recovering from a revised 2.38 percent decline in June, according to the Ministry of Industry.
The rebound was attributed to the expansion of industries aligned with technology trends, particularly electronics, where AI-driven demand has lifted hard disk drive output, while pet food and ready-to-eat meals grew on shifting consumer behaviors, the ministry said in a statement.
Government measures to boost purchasing power, ease energy cost pressures, and a weaker baht currency have also supported the competitiveness of Thai exports, said Supakit Boonsiri, director general of the ministry's office of industrial economics.
However, geopolitical tensions in the Middle East remain a key risk, adding volatility to energy prices and pushing up production and logistics costs for industry, Supakit told a news conference.
Furthermore, concerns over raw material sourcing and supply chain continuity, alongside uncertainty surrounding trade measures, could all weigh on export sentiment and competitiveness going forward, he noted.
For the first seven months of 2026, the MPI dipped 0.18 percent year-on-year, the official said.
The ministry revised its MPI outlook to a rise between 0 percent and 0.5 percent this year, down from 1.0 percent to 2.0 percent in an earlier projection. ■