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Thailand’s manufacturing sector sees slump for 16th month


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Thailand’s manufacturing sector witnessed a prolonged slump for the 16th month in January, as the country’s key economic pillar grapples with dwindling domestic and overseas motor vehicle sales, according to information released by the Industry Ministry. The year-on-year decline of 2.94% in the sector fell short of the anticipated 5.1% fall predicted in a Reuters survey and followed a revised 4.66% slump in December.

 

This downturn was primarily triggered by a reduction in auto production, marking the sixth consecutive month of slowdown, taking into account both domestic sales and exports, as stated by the ministry. Being the second-largest economy in Southeast Asia, Thailand plays a regional role as an auto assembly and export centre, hosting Japanese manufacturers such as Toyota and Honda.

 

Warawan Chitaroon, the head of the Office of Industrial Economics (OIE), attributed the stunted production to skyrocketing household debt during a briefing. This debt situation impacts broad domestic consumption and business investment decisions.

 

As of the end of September 2023, Thailand registered one of the highest ratios of household debt in the region, standing at 16.2 trillion baht (US$451 billion) or 90.9% of the gross domestic product (GDP), reported Bangkok Post.

 

The issue of loan sharks is prevalent among families with low incomes who are unable to secure bank loans, leading many individuals to be ensnared by debt with exorbitant interest rates. In response, the government is enacting new measures to tackle debt.

 

On a brighter note, the economy has received a boost from inbound tourism and government initiatives aimed at enhancing consumption. The ministry remains optimistic, projecting that factory output will experience a rise of 2% to 3% this year, following a 5.11% contraction last year.

 

Industrial products make up approximately 80% of total exports, which saw a 10% year-on-year increase in January, the highest rate in 19 months. However, Warawan pointed out that these heightened exports did not reflect new production, attributing the rise to destocking.

 

By Alex Morgan

Caption: Picture courtesy of Apichart Jinakul

 

Source: The Thaiger 2024-02-29

 

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The middle class has largely disappeared, the middle class used to be the biggest consumers... meaning they bought stuff that manufactures made.

They've gone down to the lower class or even poor class, now they do not buy stuff as before, hence manufacturing is slumping and companies are going out of business.

The wealth divide is killing Thailand.

 

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Say it ain't so, just yesterday the government published another fake poll about consumer confidence on the rise despite declining manufacturing, despite a slump in the housing market, despite a slump in new car sales, despite higher financing costs, higher unemployment and higher homelessness.

 

Yes, confidence is on the rise, yes we all just got off the boat, and we're all buying the nonsense. 

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13 minutes ago, spidermike007 said:

just yesterday the government published another fake poll about consumer confidence on the rise

 

It isn't a fake report, when something is at all time low, the only way is up.

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16 hours ago, snoop1130 said:

As of the end of September 2023, Thailand registered one of the highest ratios of household debt in the region, standing at 16.2 trillion baht (US$451 billion) or 90.9% of the gross domestic product (GDP), reported Bangkok Post.

And there have been 5 further Moths since the published Data to today

I wonder what is the real number today ?

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