Thailand: Manufacturing production contracts for seventh consecutive month
April 30, 2012
In March, manufacturing output contracted 3.2% over the same month last year, which followed a decline of the same magnitude in February (previously reported: -3.4% year-on-year). The decline exceeded market expectations that had output contracting a more moderate 0.5% and represented the seventh consecutive decline. The March reading was driven by a contraction in manufacturing of electronics, while production of motor vehicles showed positive growth for the second consecutive month. A month-on-month comparison showed that manufacturing production contracted a seasonally adjusted 4.3% in March, which contrasted the 10.2% increase tallied in February. The trend suggests that the manufacturing sector is gradually recovering, with the annual average variation in manufacturing output inching up from minus 10.8% in February to minus 10.5% in March. The Office of Industrial Economics expects manufacturing output to recover and expand 6% to 7% this year.
Author: Ricardo Aceves, Senior Economist