Thailand: Manufacturing output bounces back in August
September 30, 2011
In August, manufacturing production soared 7.0% over the same month last year, which contrasted the revised 0.7% contraction observed in July (previously reported: -1.1% year-on-year). The monthly improvement surprised private sector analysts on the upside, as they had expected that manufacturing production would rise by just 4.0% The strong August print saw automobile production jumping 15.5% over the same month last year, following a flat reading in July. In addition, production of electronics accelerated from a 6.1% increase in July to a 17.3% expansion in August. On a monthly basis, manufacturing output expanded 3.88% over the previous month in seasonally adjusted terms, which contrasted a 4.79% contraction in July, confirming the strong print suggested by the annual figures. Despite the August outturn, however, the trend continued to deteriorate, with annual average growth in manufacturing production edging down from 0.8% in July to 0.6% in August, which represented the slowest pace since manufacturing output started to show positive growth rates in February 2010. Manufacturing production is likely to nosedive in the coming months, with manufacturing firms facing the worst supply chain disruptions since the March Tohoku earthquake as the floods are causing are causing widespread damage to industrial areas.
Author: Ricardo Aceves, Senior Economist