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Economic
Research
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3
April 2017
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Thailand
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Economic Update
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Thailand’s manufacturing production index
(MPI) fell 1.5% YoY in February, retreating from a 2.2% gain the month
before. The reversal in fortune was driven by sharp contractions in the
heavily-weighted vehicle & parts and rubber & plastic products
clusters.
Going forward, we maintain our projection
for manufacturing production to expand 1.7% this year, from +1.4% in 2016,
underpinned by
1.
Rising
electrical & electronic (E&E) production, underpinned by higher
semiconductor intensity in smartphones and robust domestic appliances sales
in parallel with healthy property market domestically and abroad;
2.
Increasing
basic materials orders as the kingdom moves ahead with its infrastructure
plan;
3. Higher food production on the back of
returning tourist arrivals and increased agricultural supply.
Automotive production, however, is set to
remain weak, as eco-cars continue to suffer from the low oil price
environment; while China lifts duties on small-engine cars.
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Monday, April 3, 2017
MPI Dragged By Automotive Slump
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