In February, manufacturing production fell 3.4% over the same month last year, which represented an improvement over both the revised 15.0% contraction observed in January (previously reported: -15.2% year-on-year) as well as market expectations, which had manufacturing output declining 6.0%. Although the reading marked a moderation in the pace of contraction, it still represents the sixth consecutive fall in the index. The February drop continued to reflect a contraction in manufacturing of electronics. In contrast, manufacturing of motor vehicles showed positive growth for the first time in five months. A month-on-month comparison confirms the improvement suggested by the annual figures, as manufacturing production expanded a seasonally adjusted 9.0% over the previous month, which followed the robust 17.6% increase tallied in January. The trend suggests that growth in manufacturing output has touched bottom, with the annual average variation in manufacturing production remaining unchanged at January's minus 10.8%. That said, the recovery in the Thai manufacturing sector is expected to be protracted and, in fact, the Central Bank expects it to be delayed until the third quarter. Meanwhile, the Bank of Thailand expects the economy to expand 5.7% this year, which was revised from its previous 4.9% estimate.
Manufacturing production moderates the pace of contraction
March 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.