Thai Manufacturing Output Up 2.05% in September on Stimulus, AI Demand
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The Office of Industrial Economics (OIE) announced that the Manufacturing Production Index (MPI) for September 2024 stood at 101.37, expanding 2.05% from the same period last year, with a capacity utilization rate of 60.58%. For the third quarter, the MPI was 100.30, up 3.40% with an average capacity utilization of 59.98%. The expansion was driven by government measures that reduced cost burdens and stimulated purchasing power, particularly the 'Thai Chue Thai Plus' scheme, which benefited food, beverage, and packaging production. Additionally, the reduction in electricity rates for September-December 2024 from 3.95 baht to 3.89 baht per unit helped ease business costs.
Furthermore, growing global demand for artificial intelligence (AI) and data center-related products supported Thai electronic production and exports. Another notable industry is pet food, which has benefited from the 'pet humanization' trend, driving continuous demand growth. Since 2024, Thailand has become the world's second-largest pet food exporter, with 2025 export value reaching $2.899 billion, capturing a 10.3% global market share, while first-half 2026 exports expanded 7.57%.
However, the industrial sector still faces pressure from the Middle East conflict, which affects energy price volatility and freight costs, raising production costs. Entrepreneurs may not be able to fully pass on these costs through price hikes, risking profit margins and competitiveness. The sector must also contend with cheap imports competing in the Thai market, especially ready-made garments, sheet steel, and plastic products.
Mr. Supakij Bunnasiri, OIE Director-General, stated that for the October 2024 industrial economic warning system, the overall picture shows normal signals initially. Domestic factors remain supportive from exports, investment, and government stimulus measures, but risks persist from energy and transport costs, flood problems affecting raw material and product transport routes, and declining order confidence. Foreign factors signal caution due to protracted geopolitical conflicts, protests and a slowing EU economy, as well as uncertainty over US import tariff measures.
