BANGKOK: Thailand’s industrial output rose for a second straight month in December, boosted by stronger demand for steel, electronics, rubber and jewellery, but the gain was still small, suggesting the economic recovery remains fragile. The Industry Ministry said on Tuesday its manufacturing production index (MPI) in December was up 0.54 percent from a year earlier. A Reuters poll forecast a rise of 2.50 percent.
In November, output rose a revised 3.88 percent from a year earlier.Industrial goods accounted for around 80 percent of total exports, which rose 6.2 percent in December from a year earlier after November’s 10.2 percent jump.
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Recent improved exports are good news for the trade-dependent economy, which has struggled to grow in the face of weak global and domestic demand. Shipments are worth about two-thirds of Thailand’s gross domestic product (GDP). The ministry said 2016 output rose 0.44 percent. Capacity utilisation fell to 63.26 percent in December from November’s 66.71 percent.
Last week, Bank of Thailand Governor Veerathai Santiprabhob told Reuters that the central bank was sticking to its forecasts for flat exports this year and GDP growth of 3.2 percent, the same as in 2016.
