Thailand Manufacturing Index Declines in November 2025

Thailand's manufacturing production index experienced an unexpected contraction in November 2025, dropping 4.24% year-on-year, as announced by the Thailand Industry Ministry on December 29. This decline significantly diverged from the anticipated 0.8% growth forecasted by industry analysts. The November contraction marks a sharp reversal from the revised 0.04% year-on-year growth recorded in October 2025, highlighting the mounting structural pressures on the country's export-driven economy.

The strength of the Thai baht, which appreciated approximately 10% against the US dollar year-to-date, has been a double-edged sword. While it has bolstered asset valuations, it has simultaneously eroded export competitiveness by pushing up export prices, according to the industry ministry. The Thai baht's performance has made it Asia's second-best performing currency this year, yet this strength has placed additional strain on Thailand's manufacturing sector.