Thailand: Manufacturing production rebounds in 2012
January 31, 2013
In December, manufacturing production increased 23.4% over the same month the previous year, which, nevertheless, came in well below the extraordinary 82.3% expansion observed in November and market expectations that had manufacturing output increasing 32.0%. The monthly increase benefited from a low comparison base, as at the end of 2011 a devastating flood swamped industrial zones and hampered production in key sectors. The positive base effect, however, is beginning to wane.
A month-on-month comparison saw factory output contracting 3.1% in December in seasonally adjusted terms, which contrasted the strong 7.9% expansion recorded in November.
In the full-year 2012, manufacturing output expanded 7.1%, rebounding from the 9.0% contraction recorded in the previous year. The increase beat forecasts of the Office of Industrial Economics (OIE), which had expected manufacturing output to expand between 5% and 6% in 2012.
For 2013, the Office sees manufacturing production rising between 3.5% and 4.5%. Meanwhile, the Finance Ministry expects the economy to grow more than 5% this year.
Author: Ricardo Aceves, Senior Economist