Manufacturing Sector Contraction Worsens, January PMI Tomorrow
December industrial data showed that Thailand’s manufacturing sector remains depressed and that the January S&P Global manufacturing PMI, released February 1, is likely to print below 50 for the sixth consecutive month. December manufacturing production deteriorated further declining 6.3% y/y after -4.7% the previous month, when an improvement to -3% y/y was expected. The 3-month average travelled around -5% y/y for 2023 and the industry minister expects it to expand 2-3% in 2024. Capacity utilisation fell around 2.5points to 55.25. Last week the IMF noted that Thailand is underperforming ASEAN and needs to focus on structural reforms to improve competitiveness. It also warned there were numerous external and domestic risks to the outlook.
Thailand manufacturing sector
Source: MNI - Market News/Refinitiv/Bloomberg