In June, manufacturing output plunged 9.6% over the same month last year, which contrasted the revised 6.0% expansion observed in May (previously reported: +5.5% year-on-year) and marked the lowest level so far this year. The contraction exceeded market expectations that had manufacturing production declining 2.5% and partly reflected an unfavourable base effect. The June reading was the result of a sharp drop in manufacturing of electronics as well as in textiles. That said, production of cars continue to show strong growth. A month-on-month comparison confirms the deterioration suggested by the annual figures, as industrial production contracted a seasonally adjusted 8.0% in June, which more than offset the 5.7% increase recorded in May. As a result of the sharp decline, the trend resumed its downward trajectory, with the annual average variation in manufacturing output falling from minus 9.0% in May to minus 10.1% in June. The Ministry of Industry expects manufacturing production to recover in the second half of this year and projects output to expand between 6% and 7%.
Manufacturing output plummets in June
July 31, 2012
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Thailand Industry Chart
Note: Year-on-year changes and annual average variation of manufacturing production index in %.
Source: Office of Industrial Economics (OIE) and FocusEconomics calculations.
Thailand Economic News
October 17, 2016
On 13 October, Thailand’s beloved King Bhumibol Adulyadej died after a 70-year reign and his successor, Crown Prince Maha Vajiralongkorn, has declared his wish to wait until he ascends the throne.
October 4, 2016
In September, consumer prices inched up 0.04% from the previous month, which contrasted the 0.04% decrease observed in August and overshot market expectations of a 0.1% increase.
September 30, 2016
In August, the trade balance recorded a USD 2.1 billion surplus, which was above the USD 0.7 billion surplus observed in the same month of the previous year and was also higher than the USD 0.8 billion surplus registered in July.
September 30, 2016
In August, manufacturing production increased 3.1% over the same month last year, which was a sharp upswing from the 5.0% contraction seen in July and marked the highest reading in over three years.
September 14, 2016
At its 14 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to keep the one-day repurchase rate at 1.50% as the markets had expected. In its press release, the Bank commented that the Thai economy had accelerated in the second quarter on the back of strong private consumption and resilient public expenditure.