In September, manufacturing output dropped 0.5% over the same month last year, which contrasted the revised 6.8% expansion recorded in August (initially reported: +7.0% year-on-year). The monthly drop surprised market analysts on the downside, as they had expected that manufacturing production would rise 3.2%. The monthly drop reflected the impact of the floods that swamped about 10,000 factories and halted production in the automobile and electronics sectors. Thailand produces about a quarter of the world's hard-disk drivers and serves as a production hub for Japanese car makers and electronics firms. A month-on-month comparison corroborates the contraction suggested by the annual figures, as manufacturing output fell a seasonally adjusted 3.07% over the previous month, virtually reversing the gain observed in August (+3.66 mom). Owing to the monthly fall, the trend points to sluggish performance in the manufacturing sector, with annual average variation in manufacturing output falling from plus 0.6% in August to minus 0.1% in September, which represents the first month in the red since manufacturing production started to show positive growth rates in February 2010. That said, output is set to nosedive in the fourth quarter, as several firms were forced to suspend operations after the floods. On the back of the recent floods and due to the impasse over the Eurozone's sovereign debt concern, the Bank of Thailand significantly cut its growth forecast for this year and now expects the economy to expand 2.6%, down from its previous 4.1% estimate. For 2012, the Bank expects the economy to expand 4.1% (previous estimate +4.2%) based on solid fundamentals and on the back of reconstruction efforts.
Manufacturing production contracts in the wake of recent floods
October 31, 2011
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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.