Bangkok, The Office of Industrial Economics (OIE) revealed that the Industrial Production Index (MPI) for June 2024 was at 96.08, a contraction of 1.71 percent compared to the same period last year, reflecting that the Thai industrial sector continues to contract due to a lack of domestic purchasing power, household debt problems, and high interest rates. In terms of the industrial economic warning system, July 'sent a signal of caution.' Mrs. Voravan Chitarun, Director of the Office of Industrial Economics (OIE), revealed that the situation of Thailand's manufacturing sector continues to contract. The Industrial Production Index (MPI) in June 2024 was at 96.08, a contraction of 1.71 percent compared to the same period of the previous year, with a capacity utilization rate of 58.41 percent due to the problem of lack of domestic purchasing power, household debt, and interest rates that are still high. In addition, rising energy costs have affected the manufacturing sector, including imports from abroad flood ing into Thailand. The contraction of the industrial production index in June 2024 resulted in the second quarter's industrial production index averaging 94.74, contracting by an average of 0.27 percent, with an upward trend from the first quarter, which contracted by 3.58 percent, and an average capacity utilization rate of 57.79 percent, while the overall picture for the first 6 months of 2024 averaged 97.83, contracting by an average of 2.01 percent, and an average capacity utilization rate of 59.11 percent, reflecting that the Thai industrial sector continues to contract. In terms of the overall economic warning system for Thailand's industry in July 2024, "sending a watch signal", with all domestic factors sending watch signals. Confidence and investment contracted due to sluggish consumer purchasing power, affecting domestic consumption and trade, while foreign factors initially sent normal signals. The manufacturing sectors of the European Union and Japan are at risk of slowing down during this period . 'For the issue of the US announcing an increase in import tariffs on Chinese products in several industrial groups, approximately 25 to 100 percent, worth 18 billion US dollars or approximately 660 billion baht, which is aimed at industrial products that are considered strategic groups of China, both clean energy and new technology, with most products starting to take effect on August 1st. The US has given the reason that it wants to protect domestic industries from concerns that Chinese products may flood the US market, which will cause price competition and also block China's economic and technological growth. The issue of such tariff increases will affect the world economy in many dimensions, especially in terms of trade, investment, and global industrial sectors. Thai entrepreneurs should prepare to expand exports to the US to replace China, especially solar cells. At the same time, if China is selected as a new production base, it will have a positive effect on the electric vehicle industry, construct ion industry, construction materials, and industrial estates. In addition, there must be an adjustment to balance imports so that they do not import too much from China by increasing import tariffs if imported products are cheaper than domestically produced products,' said Ms. Worawan. Source: Thai News Agency