In May 2026, the GTI-Producers registered 48.8%, up 3.1 percentage points from the previous month. Despite this increase, the index had stayed below the critical value (50%) for several consecutive months, indicating a continued downturn for the timber harvesting and primary processing industries in the pilot producing countries.

In Asia, the GTIs for Indonesia, Thailand, and Malaysia came in at 49.8%, 44.6%, and 25.8%, respectively, all in contraction territory below the 50% critical value. On the supply side, harvesting activity in Indonesia shifted from contraction to stability, and production volume held steady for the second consecutive month. The GTI-Indonesia focal point reported that the country’s natural forest production remained relatively strong, and operational activities were supported by better field accessibility and more favorable weather conditions. In Malaysia, harvesting volume and production continued to decline, with the contraction deepening, and sample enterprises reported shortages of raw material supply. Thailand saw harvesting volume fall for the second consecutive month, while production volume dropped for the first time in the recent five months, and enterprises reported intense competition for domestic log supplies. On the demand side, Indonesia and Thailand followed a similar pattern: export orders declined, but total new orders grew due to domestic market. Meanwhile, both domestic and external demand for Malaysia remained weak.

In Africa, the Republic of the Congo, Ghana, and Gabon recorded GTI of 48.6%, 43.7%, and 39.0%, respectively, all in contraction territory. Supply-side pressures were evident across the three African countries this month, and high production costs and other factors dampened enterprises’ production and operations. Gabon’s harvesting volume fell for the fourth consecutive month, and production volume turned from growth to decline. The Congo saw harvesting volume drop for the second consecutive month, while production shifted from stable to slightly contracted. Ghana’s harvesting volume and production continued to decline. On the demand side, new orders decreased in all three countries, primarily due to a weakening domestic market. By contrast, export markets performed relatively positively: Gabon’s export orders rose from the previous month; the Congo’s export market remained stable for seven consecutive months; and Ghana’s export market saw a decline in the degree of contraction.

In Latin America, Brazil, Mexico, and Ecuador posted GTI indices of 51.7%, 49.6%, and 48.1%, respectively, indicating that Brazil’s timber sector saw an overall slight expansion, while the other two countries experienced mild contraction. On the supply side, Brazil’s harvesting volume and production both fell from the previous month, with firms reporting raw material shortages. Mexico’s harvesting volume grew for the second consecutive month, while production was unchanged from the previous month. Ecuador’s harvesting volume remained flat, and production increased for the third consecutive month. On the demand side, Brazil’s new orders surged month on month, while new orders of both Mexico and Ecuador edged slightly lower. Overall, Brazil’s demand side strengthened but its supply side faced pressure; Mexico and Ecuador saw a modest softening in demand, though their supply sides were relatively stable.

GTI-Producers Report - May 2026.pdf