Thailand: Manufacturing output rebounds as effects of earthquake fade
July 29, 2011
In June, manufacturing production expanded 3.3% over the same month last year, which contrasted the revised 3.7% contraction observed in May (previously reported: -3.9% year-on-year) and defied market expectations that manufacturing output would contract 3.0%. The reading represented the first expansion after four consecutive months of declining manufacturing production. Manufacturing production bounced back as supply chain disruptions from the Japanese catastrophes began to fade. The rebound mainly reflected an expansion in the manufacturing of electronics (May: +0.2% yoy; June: +12.5% yoy). However, the manufacturing of automobiles continued to contract, albeit at a slower pace (May: -32.5% yoy; June: -2.8% yoy). A month-on-month comparison confirms the strong expansion suggested by the annual figures, as manufacturing production mushroomed a seasonally adjusted 7.53% over the previous month, well above the 0.94% increase tallied in May. Despite the June expansion, the trend continues to deteriorate, with annual average growth in manufacturing output falling from 2.5% in May to 1.5% in June.
Author: Ricardo Aceves, Senior Economist