Thai manufacturing picks up amid junta-imposed calm

But the increase is not sustainable.

Thailand’s manufacturing industry saw a slight rise in May, riding on the back of junta-imposed political calm.

According to Maybank Kim Eng, the revival in consumer demand can be attributed to two fleeting factors - the World Cup and the payment of overdue government debt to farmers under the rice-pledging scheme, which has just been completed.

“Recovery in the business and consumer confidence index after a month of military rule supports demand in many industries. The Thai Industries Sentiment Index rose to 85.1 in May from 84.0 in April, the first increase in seven months as manufacturers are seeing signs of an economic recovery in 2H14 as the political crisis eases. We think domestic consumption can support economic growth, but we expect a gradually increase rather than a rapid improvement, as the market is expecting,” noted the report.

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