The MPI works in the midst of the conflict
Industrialists affected by soaring oil prices
Thailand’s Manufacturing Production Index (MPI) managed to rise slightly in April, rising 0.56% year-on-year to 91.79 points amid the prolonged impact of the Russian-Ukrainian war.
Compared to the March MPI, the index fell 16.5%, mainly due to the temporary closure of factories during the long Songkran holiday, the Office of Industrial Economics (IOE) reported yesterday. ).
The easing of containment measures by the government and the reopening of the country late last year were key factors that maintained the growth momentum of the MPI in the first four months of this year.
From January to April, the IPI increased by 1.37% year on year to 101.97 points.
Thongchai Chawalitpichaet, director general of the OIE, said he expects Thailand’s economy to continue to grow, following the relaxation of entry rules for foreign visitors, which would help boost the struggling tourism industry.
However, the Russian-Ukrainian war remains of concern as it affects global oil prices and raw material costs, he said.
The continued spike in oil prices has led the government to reduce its subsidy for the domestic price of diesel. Yesterday the board of the Oil Fuel Fund decided to raise the price of diesel by one baht per litre, bringing the retail price to 32.94 baht per liter from 31.94 baht per litre. The new price takes effect from today.
“Rising oil and commodity prices will eventually affect production costs in the manufacturing sector,” Thongchai said.
In April, capacity utilization stood at 58.9%, down year-on-year from 59.3% in the same period last year.
The main industries that drove the IPM in April were automobile manufacturing, which rose 12.8% year-on-year, thanks to growing demand in key segments such as vans and diesel engines, following the recovery economy in Thailand and abroad.
Oil production rose 12.5% year-on-year, driven by demand for jet fuel and diesel following the easing of restrictions on air travel and logistics.
Rubber manufacturing also increased by 23.4% year-on-year due to the global economic recovery.