In April, manufacturing output increased 0.5% over the same month a year ago, which contrasted the revised 2.7% drop observed in March (previously reported: -3.2% year-on-year) and represented, in fact, the first expansion after seven consecutive contractions. The improvement was mainly driven by the production of cars, which soared 83.1% in year-on-year terms. According to the Industry Ministry, about 72% of the affected firms by last year's flooding are up and running, with the Ministry expecting manufacturing production to rise between 6% and 7% this year. A month-on-month comparison confirms the improvement suggested by the annual figures, as manufacturing output expanded a seasonally adjusted 1.5% in April, which contrasted March's 3.0% drop. The trend suggests that the manufacturing sector is gradually recovering, with the annual average variation in manufacturing production rising from minus 10.5% in March to minus 9.8% in April. The Bank of Thailand expects manufacturing production to recover in the second quarter. Meanwhile, the Bank projects the economy to expand 6.0% this year. For 2013, the Bank anticipates growth to slow slightly to 5.8%.
Manufacturing production returns to positive growth
May 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.