Thai September manufacturing production growth was significantly weaker than expected deteriorating to -3.5% y/y from -1.9%, the slowest since March. Capacity utilisation fell to 57.5 from 58.3. September business confidence, orders books and manufacturing PMI all fell signalling weaker activity. October data is due on November 1. Thai growth continues to underperform ASEAN. Bank of Thailand deputy governor Piti said today that the central will bank will use numerous tools to support the economy. It cut rates 25bp this month but said in its minutes that its rate should be “neutral” and not too low. The THB NEER is up 7.7% y/y in October, which is tightening financial conditions. 

Thailand manufacturing