2026.07.2706:05:57UTC+00Thailand Industrial Output Shrinks the Most in 7 Months

Thailand’s industrial production declined by 3.10% year-on-year in June 2026, following an upwardly revised 1.30% contraction in May, marking a third straight month of shrinking output. This was the sharpest drop since November, reflecting the impact of higher oil prices and rising freight costs stemming from conflict-related disruptions in the Middle East.

The fall in output was led primarily by weaker automotive and petroleum production. According to the latest data, car production dropped 7.55% year-on-year in June, while palm oil output plunged 33.2% over the same period. Even so, steady growth in demand for electronics and technology-related products helped to partially offset the overall decline.

For the first half of the year, industrial production was down 0.4% compared with the same period a year earlier. Despite the recent softness in output, Thailand’s Industry Ministry has kept its forecast for factory production growth unchanged at 1.0% to 2.0% for the full year.