Thai economic activity slowed in November driven by contraction in private consumption and investment, the Bank of Thailand said in a report on Friday.
Private consumption fell 2.4 percent annually in November, mainly due to lower purchases of durable goods—particularly automobiles on account of last year’s high base and a decline in new orders.
Households remained cautious on spending given their previous debt accumulation and weakening confidence, the bank said.
Private investment dropped by 7.8 percent led by a decline in commercial car sales as well as machinery and equipment imports. Some businesses continued to delay their investment awaiting clearer signs of a recovery in the economic outlook, the report said.
That said, production in export-oriented industries grew in November on the back of a gradual improvement in merchandise exports. However, overall export value fell 4 percent from a year ago. Imports slid 9.3 percent.
Manufacturing output dropped 10.6 percent year-on-year, mainly due to fall in production of automobiles, frozen shrimp and hard disk drives. Farm output grew 5.8 percent.
The central bank also said the tourism sector continued to expand despite China’s new tourism law and Thailand’s political protests. Foreign tourist arrivals rose 11.9 percent annually in November to total 2.4 million. The number of tourists from all regions increased, the bank added.
In November, the current account logged a surplus helped by a positive trade balance, an increase in tourist receipts, and a fall in repatriation of profits and dividends.
Figures released by the bank today showed that the current account surplus rose to $2.294 billion in November from October’s $375.70 million. The trade surplus increased to $1.514 billion from $336.84 million.
The balance of payments posted a deficit of $2.439 billion, which was much larger than October’s $571.50 million shortfall.
by RTT Staff Writer
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