By Nopparat Chaichalearmmongkol

BANGKOK--Thailand's excess capacity continued falling in September although overall industrial production activity increased at a slower pace than in the previous month, the Office of Industrial Economist at the Industry Ministry said Monday.

The OIE reported that the country's manufacturing production index rose 0.6% from a year ago in September, easing from a revised 3.18% year-over-year increase in August. Sequentially, the Thai MPI increased 0.75%, slowing from a revised 3.38% on-month rise in August.

The MPI rose further in September on the back of high production of electrical appliances, electronics parts and fashion accessories, said Verasak Supprasert, deputy director general of the OIE.

According to the OIE, production of accessories rose 41.46% from last year as the local economy continued its recovery, while an increase in overseas orders for electronics parts, particularly monolithic integrated circuits and other IC units, lifted their production 7.16% compared with a year ago.

Higher exports of electrical appliances helped boost the production of air-conditioning units and other appliances by 25.29% and 11.83% respectively.

However, the OIE said that a 9.54% on-year drop in automotive sector production due to a reported change in the assembly design for new vehicle models and an 8.28% on-year fall in apparel production as a result of unfavorable economic conditions in Europe, Japan and the Middle East have impacted MPI growth.

During the first nine months of 2016, Thailand's industrial production activity edged up 0.06% though it was down 0.5% for the third quarter.

Thailand's capacity utilization, which measures how fully-utilized factories are, has increased to 65.23% in September, compared with a revised 64.42% in the preceding month.

Write to nopparat.chaichalearmmongkol@wsj.com

(END) Dow Jones Newswires

October 31, 2016 01:03 ET (05:03 GMT)

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