Thai factory output up 23.4% in December

BANGKOK: Thai factory output fell in December from the previous month and grew less than forecast from a year earlier, suggesting global problems continue to hurt exports and drag down production.

On a year-on-year basis, industrial output rose 23.4% in December from the low base a year earlier when severe flooding devastated industry. The increase was below the 32% forecast by economists in a Reuters poll. On a monthly basis, unadjusted output fell 6.31% in December.

For all of 2012, output rose only 2.51%. The Industry Ministry has said the flood-hit, important electronics sector has been slow to recover. Due to the floods, output fell 9.3% in 2011.

The Industry Ministry has forecast total output will rise 3.5%–4.5% in 2013.

Pimonwan Mahujchariyawong, an economist at Kasikorn Research Centre, said the December figures showed that industrial recovery was slower than expected.

“We expect that at the start of 2013 industrial output will revive but overall manufacturing production index (MPI) figures this year will not be particularly impressive,” she said.

“For manufacturing, the recovery of the global economy should be a plus and the baht’s strength could impact exports in a negative way, including MPI,” Pimonwan added. —