FW: RHB | Thailand | MPI Gained Momentum In August, Led By Automotive

 

 

 

 

Economic Research			2 October 2017
Thailand
Economic Update
MPI Gained Momentum In August, Led By Automotive   Thailand’s Manufacturing Production Index (MPI) accelerated to 3.7% YoY in August, driven by higher output in the automotive and refined petroleum product clusters. Meanwhile production of food & beverage (F&B) slowed sharply, capping some of the gains. Going forward, we expect manufacturing activities to ease in 4Q, hampered by a high base effect, the delay in the iPhone X release date, and the recent run-up in inventory. However, the slowdown may not be as severe as first envisaged as F&B production is set to improve on higher farm yields, and the automotive cluster may benefit from replacement demand in the US as well as front-buying of small engine vehicles in China, ahead of a scheduled tax hike at the start of next year. Hence, we raise our forecast for MPI to 0.8% this year, from -0.5% previously and +1.6% in 2016. Next year, the MPI is projected to grow 3%, underpinned by rising demand for capital goods.   Economist:  Ng Kee Chou  | +603 9280 2179
To access our recent reports please click on the links below:   02 October : Money Supply Continues To Climb On Foreign Demand 28 September:  BoT Raises GDP Forecasts, Maintains Key Repo Rate 25 September: August Exports Jump On North Asian Demand 5 September: Money Supply Sees Uptick In July 5 September: August CPI Picked Up On Higher Energy Cost
Economic Team
Peck Boon Soon	Chief ASEAN Economics	bspeck@rhbgroup.com		+603 9280 2163
Vincent Loo	Malaysia, Vietnam	vincent.loo@rhbgroup.com		+603 9280 2172
Ng Kee Chou	Singapore, Thailand	ng.kee.chou@rhbgroup.com		+603 9280 2179
Rizki Fajar	Indonesia, Philippines	rizki.fajar@rhbgroup.com		+6221 2970 7065
Aris Nazman Maslan	Malaysia, Vietnam	mohd.aris.nazman@rhbgroup.com		+603 9280 2184

 

 

 

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