Thailand: Manufacturing production growth slows in July but beats market expectations

Manufacturing output growth slowed to 4.6% year-on-year in July from June’s upwardly revised 5.0% (previously reported: +4.7% year-on-year) but nevertheless beat market expectations of a stronger moderation to 4.2%. Growth in industrial production was driven by robust expansions in the manufacture of vehicles, trailers and semi-trailers; computer, electronic and optical products; and rubber and plastic products. Marked contractions in the output of tobacco products, textiles, electrical equipment, and beverages dragged on the headline figure.

On a seasonally-adjusted month-on-month basis, manufacturing production contracted 0.5% in July, contrasting June’s upwardly revised 2.0% expansion (previously reported: +1.5% month-on-month). Annual average manufacturing output growth was stable at 4.3% in July.

Thailand Manufacturing Output Forecast

FocusEconomics Consensus Forecast panelists expect manufacturing output to grow 3.5% in 2018, which is up 0.3 percentage points from last month’s estimate. For 2019, the panel sees manufacturing output increasing 3.7%.