Thailand's industrial output shrinks 7.6% in May

[webfact]

Industrial output shrinks 7.6% in May

BANGKOK, 1 July 2015 (NNT) – Lack of recovery in the global economy and diminished domestic purchasing power have resulted in industrial output dropping by 7.6% in the month of May, although the situation is expected to improve in the latter half of this year, according to the Office of Industrial Economics (OIE).

Udom Wongwiwatthanachai, director of the OIE, indicated that the relocation of production bases for electronics products away from Thailand also contributed to the drop in output of certain products, such as hard disk drives, automobiles, televisions and jewelry.

However, the OIE expects a recovery in the sectors of automobiles, chemicals, cement and garments due to stronger demand in the latter half of the year. Exports to Cambodia, Laos, Myanmar and Vietnam – CLMV countries – are also expected to contribute to a better industrial output figure. Exportation to the CLMV countries expanded by 9% in the first five months of the year.

Mr. Udom expects industrial output to return to positive growth in the latter period of the third quarter thanks to more state spending and the expected recovery of the exports sector.


-- NNT 2015-07-01

[ikke]

This is the 3th wave.....

[Anthony5]

The positive of the news is if it continues this trend for few more months, it can't decline further, as it has reached rock bottom.

[bangkokfrog]

As always... the situation is expected to improve in the latter half of this year.

The government can put as much spin on this news as they like, but the bottom line is that it is a very disturbing sign which could spell big trouble for the economy going forward.

[kotsak]

Let's wait for the tomorrow news saying that Industrial output soared in June.

[bruceybonus]

As always... the situation is expected to improve in the latter half of this year.

The government can put as much spin on this news as they like, but the bottom line is that it is a very disturbing sign which could spell big trouble for the economy going forward.

I would say the worst is yet to come!!

Add possible sanctions on fishing & aviation and the arse could fall out of the economy

[NeverSure]

"...the relocation of production bases for electronics products away from Thailand also contributed to the drop in output of certain products, such as hard disk drives, automobiles, televisions and jewelry."

Some major businesses are moving out of Thailand. Thailand want to raise the minimum wage and companies are fleeing the one that's in place. Other countries are taking notiec and advantage.

AQUINO WANTS TO JUMPSTART A MANUFACTURING SECTOR. to Be Detroit

8 MAR 26, 2015 10:40 PM EDT

By William Pesek

For a leader facing a plethora of challenges at home, Philippines President Benigno Aquino is thinking a lot about Detroit -- in particular, how to steal the title "Detroit of Asia” away from his Southeast Asian neighbor Thailand.

Aquino’s Philippines is riding an economic high; he claims GDP growth this year could reach 8 percent, which would be the best performance since the 1950s.

The world's largest automaker (GM) may soon formalize a $1 billion investment in a new assembly plant in Mexico. Its traditional Southeast Asian base -- Thailand -- is looking less and less attractive as the ruling junta juggles a vague and shifting list of economic priorities."

Bloomberg

[bruceybonus]

"...the relocation of production bases for electronics products away from Thailand also contributed to the drop in output of certain products, such as hard disk drives, automobiles, televisions and jewelry."

Some major businesses are moving out of Thailand. Thailand want to raise the minimum wage and companies are fleeing the one that's in place. Other countries are taking notiec and advantage.

AQUINO WANTS TO JUMPSTART A MANUFACTURING SECTOR. to Be Detroit

8 MAR 26, 2015 10:40 PM EDT

By William Pesek

For a leader facing a plethora of challenges at home, Philippines President Benigno Aquino is thinking a lot about Detroit -- in particular, how to steal the title "Detroit of Asia” away from his Southeast Asian neighbor Thailand.

Aquino’s Philippines is riding an economic high; he claims GDP growth this year could reach 8 percent, which would be the best performance since the 1950s.

The world's largest automaker (GM) may soon formalize a $1 billion investment in a new assembly plant in Mexico. Its traditional Southeast Asian base -- Thailand -- is looking less and less attractive as the ruling junta juggles a vague and shifting list of economic priorities."

Bloomberg

One thing investors hate is uncertainty! And there is bucketfuls of it in Thailand!

[BigBadGeordie]

Let's wait for the tomorrow news saying that Industrial output soared in June.

Sorry, but a slight error in your post. Tomorrow they will report that output soared in August and September :-)

[Gsxrnz]

First rule of Thai government officialdom:

Hear no evil, see no evil, speak no evil.

Second rule of Thai government officialdom:

Bury your head in the sand.

Third rule of Thai government officialdom:

Bend over and kiss thine arse goodbye.

[Reigntax]

First rule of Thai government officialdom:

Hear no evil, see no evil, speak no evil.

Second rule of Thai government officialdom:

Bury your head in the sand.

Third rule of Thai government officialdom:

Bend over and kiss thine arse goodbye.

You forgot the 4th. Make an announcement that the government intends to make Thailand the arse kissing hub of Asia.

[BigBadGeordie]

First rule of Thai government officialdom:

Hear no evil, see no evil, speak no evil.

Second rule of Thai government officialdom:

Bury your head in the sand.

Third rule of Thai government officialdom:

Bend over and kiss thine arse goodbye.

You forgot the 4th. Make an announcement that the government intends to make Thailand the arse kissing hub of Asia.

"intends to make"? Think you mean "IS" ;-)

[jaywalker]

Let's wait for the tomorrow news saying that Industrial output soared in June.

Exactly like that Greek treasurer guy said the banks there would be open today and it was broadcast on world news.

There it goes....

[Thian]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

[Thai at Heart]

That is a massive drop. Ouch....

[soalbundy]

It's rater like the man who goes for a job and gets told the wage is two dollars an hour,seeing his disappointed look the manager says but later you'll get more, OK the guy say's then i'll come back later

[Oziex1]

"Thailand -- is looking less and less attractive as the ruling junta juggles a vague and shifting list of economic priorities."

In other words, economically the Junta hasn't a clue what their doing.

[theguyfromanotherforum]

This is bad, but to be fair they are doing the same spin USA and Europe do with their economy.

[Eagleizer]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

I have been thinking the same all year. Wasn`t there some talk about

that a month or so ago. Hope they know how to deal with this before

it`s too late... If I understand this right, the Bath is high because they

use the reserves?

Would be nice if there was some insightful economists here that could

shed some light on this And how much is it advisable for the Bath

to get evaluated? I only understand that with a high Bath, it`s more

difficult to sell Thai products, - and other countries imports, that goes

elsewhere might be hard to get back, even if Thailand have lower

price later on.

Cheers

[shirtless]

We will all be waiting for the next round of figures knowing Thailand this is an understated figure.

[Thai at Heart]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

I have been thinking the same all year. Wasn`t there some talk about

that a month or so ago. Hope they know how to deal with this before

it`s too late... If I understand this right, the Bath is high because they

use the reserves?

Would be nice if there was some insightful economists here that could

shed some light on this And how much is it advisable for the Bath

to get evaluated? I only understand that with a high Bath, it`s more

difficult to sell Thai products, - and other countries imports, that goes

elsewhere might be hard to get back, even if Thailand have lower

price later on.

Cheers

Its 34.???? How low can you make it go? That is far more down to Bernanke than the BOT.

[h90]

As always... the situation is expected to improve in the latter half of this year.

The government can put as much spin on this news as they like, but the bottom line is that it is a very disturbing sign which could spell big trouble for the economy going forward.

Actually in every country and every year they tell that next year it will improve.....just it never happens....

[Cake Monster]

" Bloomberg " only yesterday stated that the Phillipines had attracted 2 of the top Auto Parts Manufacturers to the country with new factories.

Wake up Thailand ! and smell the coffee before its too late.

[Eagleizer]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

I have been thinking the same all year. Wasn`t there some talk about

that a month or so ago. Hope they know how to deal with this before

it`s too late... If I understand this right, the Bath is high because they

use the reserves?

Would be nice if there was some insightful economists here that could

shed some light on this And how much is it advisable for the Bath

to get evaluated? I only understand that with a high Bath, it`s more

difficult to sell Thai products, - and other countries imports, that goes

elsewhere might be hard to get back, even if Thailand have lower

price later on.

Cheers

Its 34.???? How low can you make it go? That is far more down to Bernanke than the BOT.

If dollar is the only currency that matters to Thai economy, I

understand less then I thought... Please explain.

[soalbundy]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

devaluing the Baht would make little difference to exports as there is no demand for the goods or rather less demand, the markets a down everywhere making something 50 cents cheaper isn't going to open wallets but would increase the cost of imports and raw materials needed to make the goods. devaluing would also leave less ammunition for the central banks future fight against market turbulence.When everyone devalues it's a zero advantage race to the bottom.

[Thai at Heart]

What is the reason the Thai won't devaluate their Baht? If they were smart they would do it now.

I have been thinking the same all year. Wasn`t there some talk about

that a month or so ago. Hope they know how to deal with this before

it`s too late... If I understand this right, the Bath is high because they

use the reserves?

Would be nice if there was some insightful economists here that could

shed some light on this And how much is it advisable for the Bath

to get evaluated? I only understand that with a high Bath, it`s more

difficult to sell Thai products, - and other countries imports, that goes

elsewhere might be hard to get back, even if Thailand have lower

price later on.

Cheers

Its 34.???? How low can you make it go? That is far more down to Bernanke than the BOT.

If dollar is the only currency that matters to Thai economy, I

understand less then I thought... Please explain.

Many Thai products (the majority) are priced in USD FOB Bangkok