Bangkok: The Manufacturing Production Index (MPI) experienced a slight contraction of 0.04% in February.

According to Thai News Agency, the Office of Industrial Economics (OIE) reported that the MPI for February 2026 was recorded at 97.70, reflecting a decline compared to the same period last year. This decrease was primarily linked to a rebound in the petroleum industry due to temporary maintenance shutdowns at various refineries. Additionally, the strengthening of the Thai baht and geopolitical uncertainties have impacted logistics and energy costs, although festive spending and expanding industrial exports have provided some support.

Mr. Supakit Boonsiri, Director of the OIE, further elaborated that the contraction was largely driven by the petroleum industry, which saw a decrease of 4.82% compared to the previous year. The capacity utilization rate was noted at 58.21%. The appreciation of the Thai baht negatively affected revenue and the competitiveness of Thai exports. Prolonged geopolitical tensions, particularly those related to the Middle East conflict, have also contributed to the volatility in the global trade environment, including fluctuations in logistics and energy costs.

Increased consumer spending during events like Chinese New Year and Valentine's Day offered some economic support. The Chinese New Year spending was estimated at over 54,221 million baht, marking a 5% increase, while Valentine's Day spending was anticipated to reach nearly 2,900 million baht. Moreover, industrial goods exports have continued to grow for the 20th consecutive month. The rebound in tourist arrivals after 11 months has positively impacted industries such as frozen pork, canned tuna, potato chips, and sausages.

For March 2026, the economic and industrial outlook is cautious, with external factors signaling potential volatility due to the Middle East conflict. Domestic challenges include rising production costs and ongoing risks tied to geopolitical conflicts and global economic uncertainties. The Ministry of Industry is undertaking efforts to support entrepreneurs and promote industrial restructuring, aiming to reduce costs, increase production efficiency, and promote local content and "Made in Thailand" products. Despite these challenges, opportunities exist in sectors like food and beverages, electric and hybrid vehicles, the defense industry, rubber products, and paper packaging, which can be further developed.