In August 2025, Thailand's industrial production experienced a notable decrease of 4.19% compared to the same month the previous year. This decline surpassed market expectations, which had anticipated a reduction of only 2.1%. This follows a 3.75% contraction observed in July. Key sectors contributing to the downturn included automotive production, which fell by 8.09% compared to a 7.66% decline in July, and food products, which dropped by 5.51% against a previous decrease of 1.6%. Additionally, growth in electronic components and boards slowed to 6.42% from 8.43%, while apparel production (excluding garment stores) shifted from a robust 12.74% growth to a decline of 3.35%.
Conversely, there were signs of improvement in other sectors. The contraction in petroleum refining eased significantly to 7.98% from a sharp 18.43% fall, and declines in rubber and plastic products moderated slightly to 3.12% from 3.42%. Notably, production surged in the basic iron and steel sector, accelerating to an impressive 22.74% from 7.72%, while the manufacture of computers and peripherals saw a substantial increase to 19.14% from a marginal 0.33% growth in July. On a month-to-month basis, industrial output saw a reduction of 1.54% in August, which represented a moderation from the revised 3.72% decline reported in the previous month.
