Thai April factory output posts biggest rise in more than 8 years

[webfact]

FILE PHOTO: A worker cleans the floor near a TV assembly line, at a factory in Bangkok, Thailand July 22, 2019. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thailand's manufacturing production index (MPI) in April rose for a second straight month and at the fastest pace in more than eight years, partially due to coming off a low base last year, the industry ministry said on Monday.

 

The MPI jumped 18.46% from a year earlier, beating a forecast in a Reuters poll for a 14.6% increase and against March's revised 5.89% increase.

 

The MPI gain was boosted by higher production of automobiles, beer and air conditioners, the ministry said.

 

Capacity utilisation was 59.58% in April, down from 70.65% in March, the ministry said, with extended holidays taking place in April.

 

The MPI this month should be again supported by coming off a low base in 2020, when the Southeast Asian country imposed strict measures to contain its first COVID-19 outbreak, ministry official Thongchai Chawalitpichaet told a briefing.

 

The country's current wave of infections, which has included clusters detected in factories, may affect some production but should not have a significant impact on overall output, Thongchai said.

 

"Such infections were found among certain groups and are not affecting supply chains," Thongchai said.

 

On Sunday, Thailand's largest agribusiness firm Charoen Pokphand Foods Pcl said it had closed one of its factories for five days after several workers tested positive for COVID-19.

 

(Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by Ed Davies)

 

-- © Copyright Reuters 2021-05-31

 

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[Bluespunk]

7 minutes ago, webfact said:

The country's current wave of infections, which has included clusters detected in factories, may affect some production but should not have a significant impact on overall output, Thongchai said.

 

"Such infections were found among certain groups and are not affecting supply chains," Thongchai said.

Ah huh...

 

8 minutes ago, webfact said:

On Sunday, Thailand's largest agribusiness firm Charoen Pokphand Foods Pcl said it had closed one of its factories for five days after several workers tested positive for COVID-19.

 

[realfunster]

 

Encouraging news and not surprising, major global export economies such as US, EU & China have now bounced back strongly with high demand. 

 

Improvements in exports will help to partially offset the massive impact of a sustained lockdown on the local economy.

 

Struggling to see anything above a maximum 2% GDP growth this year, which will still leave us well below 2019 GDP levels.

That 2% is also assuming lockdowns in key economic areas could be eased ,on say, 1 July. If it drags on longer...

[Airalee]

1 hour ago, webfact said:

The MPI jumped 18.46% from a year earlier

Not surprised at such a big increase as the economy improves.  I would be interested to know how the figures compare to 2018 and 2019 however.

[Fex Bluse]

Anyone familiar with Thai culture or who has worked in a Thai-managed company knows that Thai culture dictates that the always put on a brave face, irrespective of what is actually happening. 

 

When everything collapses around them, the simple solution is to then quietly disappear into the darkness, thus saving face.

 

These brave reports mean very little.

[trainman34014]

May will look different with Factory closures already and maybe more to come.

[Susco]

2 minutes ago, trainman34014 said:

May will look different with Factory closures already and maybe more to come.

 

How many of the many thousands of factories in Thailand are closed?

[Paul Henry]

The statement beer production is up is hard to imagine when one considers that closure of bars and restaurants would have a negative impact on consumption. Then when one considers that tourist numbers are virtually zero surely the consumption of beer must be down ( Tourist numbers according to TAT are over 40mil in past years that a lot of beer being consumed)

[hotchilli]

16 hours ago, Fex Bluse said:

Anyone familiar with Thai culture or who has worked in a Thai-managed company knows that Thai culture dictates that the always put on a brave face, irrespective of what is actually happening. 

 

When everything collapses around them, the simple solution is to then quietly disappear into the darkness, thus saving face.

 

These brave reports mean very little.

Agreed, even when up to their necks in-it they say everything is fine.

[mtls2005]

Yea, year-on-year percent statisitics look good because...

 

 

forest fire burns all trees, one year later one tree grows, well you get the story.

 

 

 

[Stargeezr]

Cluster, cluster cluster, the new Thailand hub.

Geezer