In September, manufacturing output plunged 13.7% over the same month last year, which represents the fastest steepest contraction since January. The result undershot both the revised 11.2% decline recorded in August (previously reported: -11.3% year-on-year) and market expectations, which had factory output improving somewhat to a 9.9% contraction. The monthly drop mainly reflected contractions in manufacturing of electronics, particularly of hard disks as well as in output of food products. On the other, hand cars production continued to show healthy growth. A month-on-month comparison underlines an even sharper deterioration in September, as manufacturing production tumbled 4.8% on a seasonally adjusted basis, which contrasted the 0.9% increase observed in August. As a result of the annual plunge, the trend continues to point downwards, with the annual average variation in manufacturing output falling from minus 12.0% in August to minus 13.1% in September. Despite the recent deterioration observed in manufacturing production, the Office of Industrial Economics (OIE) expects output to bounce back in the last quarter this year, although that will be as a result of low base of comparison in the same period of 2011, when a devastating flooding damaged production. The OIE expects manufacturing output to expand between 5% and 6% this year.
Manufacturing production plummets to eight-month low
October 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.