Industrial production reaches 2-year high in March

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According to the Office of Industrial Economics (OIE), industrial manufacturing in March broke its two-year record, leading to a projection that the annual growth of industrial exports will be no less than 2 percent.

Based on an assessment of private industrial operators’ production in March, OIE Director Udom Wongviwatchai disclosed that overall productivity was standing at 71 percent of full capacity, surpassing that of February and reaching the highest percent in the past two years. The director ascribed the production peak to remarkable recovery in the domestic market, coupled with more robust spending brought about by the thriving tourism sector.

OIE Director Udom Wongviwatchai.OIE Director Udom Wongviwatchai.

Considering such improvement, Udom projected that the manufacturing production index (MPI) of 2015 will expand 3-4 percent while the growth of industrial GDP will reach 2-3 percent.

This year’s industrial exports also have better outlooks than last year, with growth estimated at 2 percent. More exports are being seen in such industries as automobiles, electronics and electrical appliances. Imports of raw materials and machinery, meanwhile, have also been expanding for 7-8 consecutive months and will likely help boost production over the next month or two.

Udom added that more factory openings and production base expansion will be seen in the latter half of the year than the first half. He cited the commencement of the government’s mega projects as a crucial factor driving more investments into the industrial sector.