MPC lifts economic growth, export outlook. The Bank of Thailand’s Monetary Policy Committee (MPC) yesterday raised its 2017 economic growth forecast slightly to 3.5% from 3.4% earlier predicted after revising up export growth to 5%, but kept the policy rate unchanged at 1.5%. (Bangkok Post, 6/7/2017)
Improved exports, budget disbursement to spur growth. Krisda Chinavicharana, FPO director-general, said the additional budget disbursement was previously estimated at 31 per cent. However, the figure is expected to rise until the end of the current fiscal year, he added. The FPO earlier estimated growth of 3.6 per cent in 2017, while the additional budget disbursement was targeted at 50-60 per cent of Bt160-billion additional budget. (The Nation, 7/7/2017)
BoT less pliant on credit cards. Bank of Thailand plans a credit limit for credit cardholders who earn 30,000 baht a month or lower of 1.5 times their salary. The central bank will further limit them to three plastic cards per person to rein in spending . (Bangkok Post, 7/7/2017)
Thailand’s consumer confidence lowest in 5 months. Thailand’s Consumer Confidence Index (CCI) has dropped to the lowest level during the last five months, a noted university’s economic center reported on Thursday. According to University of the Thai Chamber of Commerce’s Center for Economic and Business Forecasting, Thailand’s CCI fell to 74.9 last month, the lowest in five months, primarily due to the fact that the purchasing powers of the consumers, especially in the provinces nationwide obviously declined. (Bangkok Post, 7/7/2017)
Thailand’s inflation contracts for 2nd straight month in June, BoT to keep rate steady at 1.50 pct this year. Government data released on Monday showed that Thailand’s annual headline consumer prices fell for a second straight month in June, dragged mainly by lower food prices. Headline consumer prices fell 0.05 percent in June from a year earlier, after a 0.04 percent dip in May. Data was slightly better than a projected fall of 0.10 percent in a Reuters poll. (Econotimes, 3/7/ 2017)
China manufacturing activity accelerates in June, with official PMI at 51.7, beating expectations. China’s manufacturing activity accelerated more than expected in June, suggesting the world’s second-largest economy continues to confound expectations for a slowdown. The official manufacturing Purchasing Managers’ Index rose to 51.7 in June, accelerating from May’s 51.2 and beating a Reuters poll forecast for 51.0. (CNBC, 3/7/2017)
China’s non-manufacturing sector expands faster in June. Boosted by a strong service sector, China’s non-manufacturing activity expanded at a faster pace in June, adding to signs of a stabilizing Chinese economy, official data showed Friday. The non-manufacturing purchasing managers’ index (PMI) came in at 54.9 in June, up from 54.5 in May, according to the National Bureau of Statistics (NBS). A reading above 50 indicates expansion, while a reading below reflects contraction. For the first half of 2017, non-manufacturing PMI averaged 54.6, higher than the 53.4 during the same period last year, NBS data showed . (China Daily, 3/7/2017)
Fed’s Bullard says needs strong data to go it alone among global central banks. The U.S. Federal Reserve can go it alone on monetary policy among global central banks but strong data is needed for that to continue, St. Louis Federal Reserve chief James Bullard said on Thursday. “The U.S. is kind of trying to go it alone… which we can do and we certainly have done historically,” Bullard told an event in London. (CNBC, 3/7/2017)
Euro area unemployment at 9.3%. The euro area (EA19) seasonally-adjusted unemployment rate was 9.3% in May 2017, stable compared to April 2017 and down from 10.2% in May 2016. This remains the lowest rate recorded in the euro area since March 2009. The EU28 unemployment rate was 7.8% in May 2017, stable compared to April 2017 and down from 8.7% in May 2016. This remains the lowest rate recorded in the EU28 since December 2008. These figures are published by Eurostat, the statistical office of the European Union. (The Financial, 4/7/2017)
U.S. service sector growth accelerates in June: ISM. The pace of growth in the U.S. economy’s service sector accelerated in June, as stronger demand offset slower employment gains, according to an industry report released on Thursday. The Institute for Supply Management (ISM) said its index of non-manufacturing activity rose to 57.4 from 56.9 in May. The reading topped expectations of 56.5 from a Reuters poll of 59 economists. (CNBC, 7/7/2017)
