Thailand July Factory Output Unexpectedly Rises, Fueled by AI Demand

Deep News12:30

Thailand's manufacturing production saw an unexpected rebound in July, driven by a significant surge in output of electronic components and products, as demand from artificial intelligence and data centers continues to climb. Data from the Office of Industrial Economics showed that manufacturing production grew by 0.46% year-on-year in July, defying market expectations of a 0.95% decline. The June figure was revised to a contraction of 2.38%.

The forecast, based on a survey of six economists, had a range of -2.00% to +1.20%. Meanwhile, the capacity utilization rate eased to 57.24% in July, down from a revised 57.51% in the previous month.

At a briefing on Monday, the head of the Office of Industrial Economics, Supakit Boonsiri, indicated that lower oil prices and robust overseas demand for electronics would continue to underpin the manufacturing sector in the second half of the year. However, he also cautioned that ongoing conflicts in the Middle East and a slowdown in tourism growth could still weigh on manufacturing output.

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