Thailand Industry


Thailand: Manufacturing production contracts in the wake of recent floods

October 31, 2011

In September, manufacturing output dropped 0.5% over the same month last year, which contrasted the revised 6.8% expansion recorded in August (initially reported: +7.0% year-on-year). The monthly drop surprised market analysts on the downside, as they had expected that manufacturing production would rise 3.2%. The monthly drop reflected the impact of the floods that swamped about 10,000 factories and halted production in the automobile and electronics sectors. Thailand produces about a quarter of the world's hard-disk drivers and serves as a production hub for Japanese car makers and electronics firms. A month-on-month comparison corroborates the contraction suggested by the annual figures, as manufacturing output fell a seasonally adjusted 3.07% over the previous month, virtually reversing the gain observed in August (+3.66 mom). Owing to the monthly fall, the trend points to sluggish performance in the manufacturing sector, with annual average variation in manufacturing output falling from plus 0.6% in August to minus 0.1% in September, which represents the first month in the red since manufacturing production started to show positive growth rates in February 2010. That said, output is set to nosedive in the fourth quarter, as several firms were forced to suspend operations after the floods. On the back of the recent floods and due to the impasse over the Eurozone's sovereign debt concern, the Bank of Thailand significantly cut its growth forecast for this year and now expects the economy to expand 2.6%, down from its previous 4.1% estimate. For 2012, the Bank expects the economy to expand 4.1% (previous estimate +4.2%) based on solid fundamentals and on the back of reconstruction efforts.

Author:, Senior Economist

Sample Report

Looking for forecasts related to Industry in Thailand? Download a sample report now.


Thailand Economic News

  • Thailand: Inflation inches down in May

    June 4, 2019

    Consumer prices increased 0.48% month-on-month in May, up from the prior month’s 0.44% rise, reflective on noticeable price increases for food and non-alcoholic beverages, while transportation and communication costs also rose albeit at a softer pace than in the prior month.

    Read more

  • Thailand: Manufacturing output rebounds in April

    May 28, 2019

    Manufacturing production rose 2.0% year-on-year in April, swinging from a revised 2.7% contraction in March (previously reported: -2.5% year-on-year).

    Read more

  • Thailand: Exports fall again in April

    May 23, 2019

    Thailand recorded a trade deficit of USD 1.5 billion in April, swinging from a USD 2.0 billion surplus in March; the 12-month moving sum of the trade balance narrowed from a USD 3.0 billion surplus in March to a USD 2.6 billion surplus.

    Read more

  • Thailand: Economic growth moderates to near five-year low in Q1

    May 21, 2019

    Economic growth decelerated to 2.8% year-on-year in the first quarter of 2019, down from the 3.6% annual expansion logged in Q4 last year and the lowest reading in nearly half a decade.

    Read more

  • Thailand: Inflation stable in April at lower end of Central Bank’s target range

    May 16, 2019

    Consumer prices rose 0.44% in April over the previous month (March: 0.41% month-on-month) due to stronger price increases for food and non-alcoholic beverages, and apparel and footwear. Inflation was stable at March’s 1.2% in April, remaining within the Central Bank’s 1.0%–4.0% target range for the second time after several months of undershooting.

    Read more

More news

Search form