Thai April factory output rises 0.56% y/y, below forecast

BANGKOK (Reuters) – Thailand’s factory output in April rose at a smaller pace than expected as higher costs continued to affect production, despite improved economic activity, the industry ministry said on Monday.

The manufacturing production index (MPI) rose 0.56% in April year-on-year, below a forecast rise of 1.6% in a Reuters poll and against March’s 0.44% increase.

Factory output, however, should continue to be underpinned by increased domestic activity following an easing of COVID-19 curbs, while a weak baht further boost manufacturing exports, ministry official Thongchai Chawalitpichaet told a briefing.

In April, production of cars, oil, and rubber products rose while output of hard disk drives dropped due to a shortage of materials over China’s pandemic lockdown measures, the ministry said

In January-April, the MPI index rose 1.37% from a year earlier. Industrial goods account for about 80% of total exports.

(Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by Ed Davies)