FX.co ★ Thailand Industrial Output Unexpectedly Drops

Thailand's industrial production witnessed a significant drop of 4.24% year-on-year in November 2025, deviating from the anticipated market growth of 0.8% and further declining from a 0.08% decrease recorded in October. The primary contributing factor to this downturn was a reduced petroleum output, alongside a substantially appreciating baht, which hindered export competitiveness by elevating international price levels. The baht has appreciated approximately 10% against the US dollar this year, creating additional challenges for manufacturers. Production activities also faced disruptions due to flooding in the southern regions and a decline in tourism activity. However, these adverse factors were partially counterbalanced by robust export demand, an increase in automotive production, and supportive government measures. Notably, vehicle production saw an approximately 11% rise compared to the previous year, assisting Thailand in remaining on course to achieve its annual production objective. Despite this setback in November, authorities maintained their outlook unchanged, predicting a modest decline in factory output for 2025, followed by a return to growth in 2026.