Thailand: Manufacturing output beats expectations in August
September 30, 2017
Manufacturing output increased 3.7% year-on-year in August, which is slightly above the pace of expansion seen in the prior month (July: +3.4% yoy; previously reported: +3.7% yoy) and overshot market expectations of a markedly slower pace of growth. The third quarter of the year seems to have put an end to the sector’s volatile trajectory seen throughout the first half of the year, as manufacturing output has now recorded solid growth rates back-to-back. August’s annual print was supported by higher output in the motor vehicles, trailers and semi-trailers, rubber and plastic goods, and tobacco products sub-sectors.
In month-on-month terms, manufacturing output increased a seasonally-adjusted 2.7% in August, a significant increase from July’s 1.1% expansion. The figure came on the back of higher production in the rubber and plastic goods, clothing and furniture sub-sectors.
Annual average growth in manufacturing production came in at 1.2% in August (July: +1.3%). Thailand’s strong external sector is likely buttressing the manufacturing sector: Industrial goods make up four-fifths of exports.
Author: Jan Lammersen, Economist