In May, manufacturing production expanded 5.5% over the same month last year, which contrasted the revised 0.1% contraction recorded in April (previously reported: +0.5% year-on year) and marked, in fact, the first expansion after eight consecutive contractions. The expansion overshot market expectations of a 2.5% increase and mainly reflected a robust increase in the production of cars, which soared 136% in annual terms. According to the Federation of Thai Industries (FTI), car production surpassed 200,000 units in May, which represents the highest output level in five decades. A month-on-month comparison confirms the strong growth suggested by the annual figures, as industrial output soared a seasonally adjusted 5.9% over the previous month, which was well above the 1.0% increase observed in April. The trend suggests that the manufacturing sector is gradually recovering, with the annual average variation in manufacturing output rising from minus 9.8% in April to minus 9.0% in May. The Ministry of Finance revised its growth forecasts for this year amid the faster-than-expected recovery in manufacturing output. Accordingly, the Ministry expects the economy to expand 6.2%, up from its previous 5.5% estimate in March. Meanwhile, the Bank of Thailand expects economic growth to reach 6.0% this year before decelerating slightly next year to 5.8%.
Manufacturing production returns to growth in May
June 30, 2012
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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.