Thailand: Manufacturing output decreases unexpectedly in June
July 29, 2017
Following an increase in industrial output in the previous month, Thai manufacturing output decreased unexpectedly, defying market analysts’ expectations. In June, manufacturing production contracted a marginal 0.2% in annual terms which contrasted May’s revised 1.6% increase in production (previously reported: +1.4% year-on-year) and undershot the market’s expectation of 1.2% growth. The lackluster performance seen in the first quarter continued in the second quarter of the year: manufacturing output continued to yo-yo throughout the first six months of 2017. June’s reading came chiefly on the back of weak performances in the tobacco, fabricated metal products (except machinery and equipment), furniture as well as the machinery and equipment sub-sectors.
A comparison in monthly terms showed that manufacturing output decreased a sizeable 3.1% in June, in contrast to the previous month’s 0.3% increase. The downward trend that has been witnessed since the outset of the year continued in June: annual average growth in manufacturing production came in at 0.7%, down from the previous month’s 0.9%.
Author: Jan Lammersen, Economist