Thailand: Unexpected increase in manufacturing production in May
June 30, 2017
Manufacturing production unexpectedly swung up in May to 1.4% from the previous month’s revised 1.8% contraction (previously reported: -1.7%) and overshot market expectations of a 0.20% fall. May’s print is the highest reading since January, following a lackluster performance in the first quarter of the year, which initially spilled over into the second quarter last month. May’s print was underpinned by strong performances in the motor vehicles, trailers and semi-trailers, wearing apparel, dressing and dyeing and other transport equipment sub-sectors.
A month-on-month comparison showed that manufacturing output increased a seasonally adjusted 0.3% in May, contrasting April’s 0.9% decrease. Despite the positives in May, the strong showing was not enough to reverse the downward trend: annual average growth in manufacturing production stood at 0.9% in May, down from the previous month’s 1.2%.
Author: Jan Lammersen, Economist