Thailand: Manufacturing output drops for the first time in more than a year
January 31, 2011
In December, manufacturing production fell 2.5% over the same month the previous year, which contrasted both the 5.7% expansion observed in November and market analyst expectations, which had seen manufacturing output rising 0.6%. The reading represented the first drop after 13 consecutive months of manufacturing production growth. The fall in December reflected a sharp contraction in the manufacture of accounting and computing machines (November:+0.5% year-on-year; December: -18.5% yoy) and a deceleration in the manufacture of food and beverages (November: +4.8% yoy; December: +0.7% yoy) Furthermore, output of furniture continued to fall in December. A month-on-month comparison, however, does not confirm the deterioration suggested by the annual figures, as manufacturing production expanded a seasonally adjusted 0.92% in December. As a result of the December contraction, the trend has turned. Following on more than a year of improving trend figures, annual average growth in manufacturing production notched slightly downwards from its 17.6% peak in October to 17.4% in November, before tumbling to 14.5% in December.
Author: Ricardo Aceves, Senior Economist