Thailand’s industrial output grew more than expected in November compared to the same month last year, which was dramatically hampered by floods.
According to the data released Thursday by the Office of Industrial Economics of Thailand, the country’s industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines and utilities, rose 83.3 percent in November to 189.11 from a revised 36 percent in October. Analysts expected last month's gain to be 68.5 percent.
This report comes after it was revealed earlier this month that Thailand’s consumer confidence rose in November compared to that in the previous month, indicating an improvement in domestic spending which accounts for the majority of overall economic activity.
According to the data released earlier this month by the University of the Thai Chamber of Commerce, the country’s consumer confidence index rose to 69.40 in November from 68.10 in October and above the analysts’ expectation of 67.50.
However, it was reported last month that Thailand’s economic growth slowed in the third quarter, compared to that in the previous quarter. The data published last month by the National Statistical Office of Thailand showed that the country’s gross domestic product (GDP), which measures the annualized change in inflation-adjusted value of all goods and services produced by the economy, grew 3 percent in the quarter ending Sept. 30, compared to that in the same period last year, down from a 4.4 percent growth in the second quarter.
Last month, the Bank of Thailand (BoT) decided to keep its policy rate unchanged at 2.75 percent. In October, the central bank cut the policy rate by 25 basis points. The BoT noted that the downside risks to the global economy remained a key concern for Thailand’s central bank. While recent monetary policy easing measures among major economies supported the financial markets, the BoT viewed the global economic outlook as weak.
Considering that Thailand’s export-led growth model has been affected by the global economy, it can be expected that the BoT will further cut its policy rate by 2013.