Thailand: Manufacturing bounces back in January
February 28, 2011
In January, manufacturing production rose 3.7% over the same month last year, which contrasted the revised 3.4% fall observed in December (previously reported: -2.5% year-on-year), but fell short of market expectations, which had seen industrial production expanding a more robust 4.1%. Manufacturing output bounced back in January, after recording its first annual contraction in December, which followed 13 consecutive months of positive growth. The January improvement was mainly the result of a sharp expansion in textiles as well as in radio, televisions and communication equipment. A month-on-month comparison corroborates the improvement suggested by annual figures, as manufacturing production expanded a solid 1.29% in January in seasonally adjusted terms, which exceeded the previous month's 0.45% increase. Owing to the moderate January reading, the trend continues to point downwards, with annual average growth in manufacturing output plummeting from 14.5% in December to 12.5% in January, after manufacturing output growth reached its peak in October 2010. Meanwhile, the Central Bank expects the economy to expand between 3.0% and 5.0% this year, while the National Economic and Social Development Board expects the economy to expand between 3.5% and 4.5% this year.
Author: Ricardo Aceves, Senior Economist