Thailand: Manufacturing output plummets in June
July 31, 2012
In June, manufacturing output plunged 9.6% over the same month last year, which contrasted the revised 6.0% expansion observed in May (previously reported: +5.5% year-on-year) and marked the lowest level so far this year. The contraction exceeded market expectations that had manufacturing production declining 2.5% and partly reflected an unfavourable base effect. The June reading was the result of a sharp drop in manufacturing of electronics as well as in textiles. That said, production of cars continue to show strong growth. A month-on-month comparison confirms the deterioration suggested by the annual figures, as industrial production contracted a seasonally adjusted 8.0% in June, which more than offset the 5.7% increase recorded in May. As a result of the sharp decline, the trend resumed its downward trajectory, with the annual average variation in manufacturing output falling from minus 9.0% in May to minus 10.1% in June. The Ministry of Industry expects manufacturing production to recover in the second half of this year and projects output to expand between 6% and 7%.
Author: Ricardo Aceves, Senior Economist