Thongchai Chavalitpichet, director of the Office of Industrial Economics (NESDB), revealed that March’s Industrial Production Index (MPI) was at 109.32, slightly down 0.12% compared to the same period last year. The MPI index for the first quarter of 2016 expanded by 1.41% compared to the same period last year.
Factors contributing to the index came from the opening of the country and the relaxation of immigration measures including the policy of opening the country As a result, economic activities have improved. causing domestic demand to gradually recover This is reflected in the continuous expansion of the petroleum industry. As well as the depreciation of the baht will benefit the export sector, making Thai products more competitive in the world market.
Meanwhile, the unrest between Russia and Ukraine has resulted in higher production costs. especially the price of energy and transportation costs. Overall, the inflation situation began to affect operators in the industrial sector. This is reflected from the Producer Price Index (PPI) of the Office of Trade Policy and Strategy. Monthly industrial product category March grew at 10.4%, accelerating from the previous month. February grew at 8.0%
“The industrial economy is likely to expand from a signal that March’s total exports grew 19.54%, the highest in 30 years, and the export of industrial products (excluding gold, weapons, tanks and aircraft) in March grew by 7.26%. The export value is 20,705 million US dollars. coupled with the import of capital goods Raw materials and semi-finished products (Excluding gold) March grew by 5.66% and 11.52%, respectively, to prepare for further production,” said Mr Thongchai.
