Thailand’s industrial production fell 0.80% year-on-year in May 2026, a sharper decline than market expectations of a 0.48% drop. This was the second consecutive monthly contraction and the steepest fall since November, reflecting pressure from higher oil prices and disruptions linked to the conflict in the Middle East. Last month, Thailand’s industry body forecast full-year factory output growth at 1.0% to 2.0%, revising down its earlier projection of 1.5% to 2.5%.