MPI continues to rise as exports shine. The manufacturing production index (MPI) continues to rise, gaining 3.7% year-on-year in August to 112.94, indicating that the economy is still recovering, says the Office of Industrial Economics (OIE). The year-on-year rise in July was 3.7%. The increase in August brought the MPI index for the first eight months of the year up 0.6% to 107.68, said OIE deputy director-general Veerasak Supprasert. He said the MPI’s rise in August was mainly due to increasing exports of cars (particularly diesel pickup trucks), rubber and electric appliances, implying that the Thai economy is slowly recovering. (Bangkok Post, 2/10/17)
Sepo eyes similar PPP approvals. The State Enterprise Policy Office (Sepo) expects its budget approval of public private partnerships (PPP) for next year will be similar to this year’s tally worth 340 billion baht. (Bangkok Post, 4/10/17)
Thai Sept headline consumer price index up 0.86 pct y/y, above forecast. Thailand’s annual headline consumer price index rose for a third straight month in September, beating forecasts, government data showed on Monday, but the rate was still below the central bank’s target, giving it room to keep monetary policy loose to aid growth. Headline consumer price index increased 0.86 percent in September from a year earlier, after a 0.32 percent rise in August. A Reuters poll projected a rise of 0.45 percent in September. (Reuters, 3/10/17)
China September official factory PMI rises to 52.4, highest since 2012. China’s manufacturing activity grew faster than expected in September as factories cranked up production to take advantage of strong demand and high prices fuelled by a year-long building boom. The official Purchasing Managers’ Index (PMI) released on Saturday stood at 52.4 in September, compared to 51.7 in August and well above the 50-point mark that separates growth from contraction on a monthly basis. (Reuters, 2/10/17)
China September official services PMI rises to 55.4, highest since May 2014. Growth in China’s services sector rose to the highest level since May 2014 in September, an official survey showed on Saturday, marking the first rise in three months for the indicator. The official nonmanufacturing Purchasing Managers’ Index (PMI) rose to 55.4 from 53.4 in August. The September reading was the highest level since May 2014, when it was 55.5. (Reuters, 2/10/17)
China’s Caixin manufacturing PMI drops in September. Manufacturing activities at smaller Chinese enterprises continued to expand in September, but at a slightly weaker rate, a private survey showed on Saturday. The Caixin China General Manufacturing Purchase Managers’ Index (PMI) stood at 51 for September, down from a six-month high of 51.6 in August, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media Co Ltd. (China Daily, 2/10/17)
US manufacturing activity hits 13-year high; construction spending up. U.S. factory activity surged to a more than 13-year high in September amid strong gains in new orders and raw material prices, pointing to underlying strength in the economy even as Hurricanes Harvey and Irma are expected to dent growth in the third quarter. The Institute for Supply Management (ISM) said its index of national factory activity surged to a reading of 60.8 last month, the highest reading since May 2004, from 58.8 in August. (CNBC, 3/10/17)
ECB Focused on Pace Versus Duration as Caution Rules QE Plan. European Central Bank policy makers kicked off their debate about next year’s monetary stimulus by focusing on how to balance the size and duration of monthly asset purchases. The Governing Council looked at general tradeoffs between various scenarios for bond-buying, according to an account of the Sept. 6-7 meeting published on Thursday. They also reiterated that they intend to move extremely carefully to avoid rocking investors and undermining the recovery. (Bloomberg, 6/10/17)
Hurricane Harvey curbs U.S. consumer spending; inflation muted. U.S. consumer spending barely rose in August likely as Hurricane Harvey weighed on auto sales, while annual inflation increased at its slowest pace in nearly two years, pointing to a moderation in economic growth in the third quarter. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, edged up 0.1 percent last month also likely as unseasonably mild temperatures in some parts of the country reduced demand for utilities. (Reuters, 2/10/17)
Trump Talks to Cohn, Yellen, Warsh and Powell for Fed Chair. President Donald Trump has so far talked with Federal Reserve Chair Janet Yellen, National Economic Council Director Gary Cohn, Fed board governor Jerome Powell and former governor Kevin Warsh as he considers who to nominate to head the U.S. central bank, three people familiar with the discussions said. (Bloomberg, 2/10/17)
