Thailand: Manufacturing production eases in August
September 30, 2020
Manufacturing production grew 3.3% month-on-month in seasonally-adjusted terms in August (July: +6.3% mom). The continued growth was driven by an uptick in the production of automobiles, rubber and plastic products, and electronic components.
On an annual basis, manufacturing production plummeted 9.3% in August (July: -12.9% yoy), the softest fall since February. Meanwhile, the trend pointed down, with the annual average variation of manufacturing production coming in at minus 10.5% in August, down from July's minus 10.1% reading.
Commenting on the results, Prakash Sakpal, senior economist at ING, said:
“Weak domestic demand has been a bigger drag on manufacturing than exports. This with continued large unused manufacturing capacity should ensure no imminent inflation pressure in the near term. The capacity utilisation improved to 60.7% in August from 57.6% in the previous month but was still well below the 67.7% pre-Covid level.”
Author: Stephen Vogado, Economist