Bangkok Post

[thailand_tom]

The Thai economy showed signs of a clear slowdown in September, with exports and manufacturing production both down from the previous month, according to data released by the Bank of Thailand yesterday.

Amara Sriphayak, a senior director for the central bank's domestic economy department, said the US and global economic slowdown had a clear impact on Thailand, with third-quarter export figures clearly down from the first half.

Manufacturing production slowed as a result, while tourism revenues sunk due to domestic political instability.

But farm prices remained relatively strong, helping support rural incomes and economic activity.

Mrs Amara said the economy slowed in September from August, adding that the central bank now projected third-quarter growth to drop to 4% and fall even further in the fourth quarter.

The National Economic and Social Development Board is scheduled to release third-quarter growth figures on Nov 24. The economy slowed to 5.3% year-on-year growth in the second quarter from 6.1% in the first.

September economic figures showed declines across a number of areas, with the manufacturing production index slowing to 4.6% growth from 7.6% the previous month. Industrial capacity utilisation also dropped to 68.2% in September from 70% the previous month.

Export-oriented industries posted a sharp slowdown in activity, with growth of 8.8% year-on-year in September compared with 16.4% the previous month.