MPI rising to expectations with steel and electronics

The manufacturing production index (MPI) continued to rise in January on greater demand for electronics, steel and pharmaceuticals, according to the Office of Industrial Economics (OIE).

Director-general Verasak Supprasert said the MPI index was 109.89 in January, up 3% from December and up 1.3% year-on-year.

A key sector lending support to the January MPI was electronics and electronic parts, up 30% year-on-year on demand from digital industries and mobile phone makers.

The steel industry index rose 13.6% year-on-year as the government’s massive investment in infrastructure projects helped support demand for construction steel.

The auto industry index added 1.3% year-on-year, aided by government attempts to attract car assembly and make Thailand a regional automotive hub.

Rising crop prices also had a knock-on effect for the auto industry, stimulating farm-sector demand for pickup trucks.

Some sectors have yet to fully recover, however, with indices continuing to fall.

The index for jewellery and accessories, for instance, fell by 20.7% year-on-year on weaker demand from major importing countries.

With demand rising for the most part, Thai industry is running at an average of 60.4% of total capacity.

The OIE this year expects improved performance by the auto industry, busier global trade and increasing investment, especially in targeted industries in the Eastern Economic Corridor, spanning Chon Buri, Rayong and Chachoengsao provinces.

The targeted industries are: food and food processing; automotive and auto parts; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

The Board of Investment said recently that investment applications numbered 1,205 during the first 10 months of 2016, amounting to total investment of 408 billion baht.