The Lingering Tension of Trade War Stomps Thai MPI by 4%, Falling the Most in 5 Years!
The Office of Industrial Economics has reported a decline of 4% in Thai Manufacturing Production Index (MPI) in May, exceeding all analysts’ estimation.
On Tuesday, June 25, 2019, the Office of Industrial Economics has reported a decline of 4% in Thai Manufacturing Production Index (MPI) in May, exceeding all analysts’ estimation.
According to the data, a drop of 4% is the worst since 2014. The Office of Industrial Economics states that the U.S.-China tension is the key risk factor that needs to be monitored closely.
Their two leaders, the U.S. President Donald Trump and the Chinese President Xi Jinping, are scheduled for an extended meeting at the G20 summit in Osaka later this week. There has been a report of delegates from both parties to meet up ahead of their leaders’ meeting.
The Office of Industrial Economics also reports that automotive, fertilizer and rubber production weighed on the performance of manufacturing last month while the capacity utilization was 67.7%.
In further statement from Nattapol Rangsitpol, the head of the Office of Industrial Economics, it is believed that manufacturing output may continue to decline in June, but the pace of the contraction will likely slow.
