Thailand: Manufacturing output continues to slow in October
November 30, 2010
In October, manufacturing production grew 6.2% over the same month last year, which was below the 8.1% increase observed in September. The reading represented the slowest growth in manufacturing production since November 2009. The deceleration in October was mainly driven by slower growth in the manufacture of food products and beverages, which expanded 2.0% year-on-year (September: +4.3% yoy). In addition, radio, television and communication equipment production decelerated from a 13.3% expansion in September to only 3.8% in October. A month-on-month comparison confirms the deceleration suggested by the annual figures, as manufacturing production dropped 0.71% over the previous month in seasonally adjusted terms, contrasting the 3.60% expansion observed in September. However, the trend in manufacturing output continues to point up. Despite the October deceleration, annual average growth in manufacturing production stepped up from 17.0% in September to 17.7% in October. Meanwhile, the National Economic and Social Development Board (NESDB) revised its growth forecast for this year to 7.9%, up from its previous 7.5%. The Central Bank expects the economy to expand between 7.3% - 8.0% this year and between 3.0% - 5.0% in 2011.
Author: Ricardo Aceves, Senior Economist