Thai Factory Output Falls
World Economy

Thai Factory Output Falls

Thailand’s industrial output fell more than expected in January and at the sharpest pace in more than a year, showing the trade-reliant economy continues to struggle amid weak global and domestic demand.
Stubbornly weak exports and domestic spending have been a big drag on the country. The industry ministry said on Monday its manufacturing production index in January contracted 3.3% from a year earlier after December’s revised 1.4% gain. A Reuters poll predicted a 0.2% drop.
Falling commodity prices and drought have also hit the farm sector. While government spending and tourism are picking up, some big public infrastructure projects have yet to get started.
“The weak external environment is expected to remain as one of Thailand’s key drags to economic growth,” said Barnabas Gan, an economist at OCBC in Singapore.
“The weak manufacturing print serves to reinforce this expectation, given that industrials react to the lower export prints.”
However, a recent pickup in consumption means Gan expects the Bank of Thailand to keep its interest rates unchanged at its next policy meeting in March.
January’s decline in output was led by lower production of autos, electronics, steel and apparel. Car production slipped 11.7% in January from a year earlier but car exports rose 1.4%.
The auto sector accounts for about 10% of gross domestic product. Thailand is a regional manufacturing and export hub for global automakers and major makers of hard drives.
Factory output has been weak for more than two years. Industrial goods account for nearly 80% of total exports, which tumbled 8.9% in January from a year earlier, the fastest pace of decline in more than four years.
Capacity utilization in January rose slightly to 63.93% from 62.89% in December.

Short URL : http://goo.gl/Y8qGue
  1. http://goo.gl/HCK4UC
  • http://goo.gl/eMgJ3Z
  • http://goo.gl/jXOk6V
  • http://goo.gl/yiQ4Q0
  • http://goo.gl/oBw0Cb

You can also read ...

Even though the US tariffs on their own may have a limited impact, global economic growth will slow should US trigger a trade war with  China or the European Union.
The volume of global trade grew faster than the world economy...
OECD Finds No Consensus on Interim E-Commerce Taxes
The Organization for Economic Cooperation and Development’s...
S. Arabia Among World’s Worst Performing Property Markets
Saudi Arabia’s real estate market continued to be one of the...
Greece Looking Economically Vibrant on Road to Recovery
It’s nearly springtime in Athens: street trees are heavy with...
Since China’s entry into the World Trade Organization in 2001, it has become the most formidable  economic competitor the United States had even seen.
The US national debt exceeded $21 trillion for the first time...
Merkel Says Trying to Boost Domestic Demand
Germany is trying to stimulate domestic demand to offset...
Gaza growth fell from 8% in 2016  to a mere 0.5% in 2017.
Gaza has seen conditions steadily deteriorate over the last...
ECB wants to keep headline inflation below,  but close to 2% year-on-year.
Eurozone consumer prices grew less than expected in February...