In July, manufacturing output fell 5.8% over the same month last year, which, nonetheless, represented an improvement over the 9.6% contraction recorded in June. The decline, which marks the second consecutive drop in manufacturing output, exceeded market expectations of a 3.5% contraction and mainly reflected a sharp decline in electronics production, particularly in production of communication equipment. In addition, output of oil products deteriorated over the previous month. A month-on-month comparison confirms the slight improvement suggested by the annual figures, as manufacturing production dropped a seasonally adjusted 0.2% in July, well above the 8.9% plunge suffered in June. As a result of July's decline, the trend continues to point downwards, with the annual average variation in manufacturing output falling from minus 10.1% in June to minus 10.5% in July. Meanwhile, the Ministry of Finance expects the economy to expand 6.2%, whereas the Bank of Thailand revised its growth forecast for this year and now expects economic growth to reach 5.7%, below its previous 6.0% estimate.
Manufacturing production contracts for second consecutive month
August 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.