Thailand: Manufacturing production plunges in August
September 28, 2012
In August, manufacturing production plummeted 11.3% over the same month last year, which marked the sharpest decline since January. The print came in below the revised 5.5% contraction recorded in July (previously reported: -5.8% year-on-year) and exceeded market expectations of a 7.0% decline. A sharp drop in production of electronics as well as of communication equipment, were the main drivers behind the monthly decline. A month-on-month comparison, however, does not confirm the deterioration suggested by annual figures, as manufacturing output grew a seasonally adjusted 1.2% in August, which contrasted the 0.5% drop recorded in July. As a result of annual decline, the trend continues to point downwards, with the annual average variation in manufacturing output falling from minus 10.5% in July to minus 12.0% in August. Office of Industrial Economics' deputy director general Hathai Uthai recently stated that manufacturing output is likely to fall again in September, "probably close to August's figure". The Bank of Thailand expects the economy to expand 5.7% this year, before slowing down to 5.0% in 2013.
Author: Ricardo Aceves, Senior Economist