Central bank laments lack of private investment — Thailand’s economic conditions are expected to improve in the second half propelled by public expenditure, but a low private investment ratio still constrains the country’s full growth potential, says a senior Bank of Thailand official. (Bangkok Post, 1/7/16)
Department wants VAT kept at 7% for another year — The Revenue Department plans to propose that the Finance Ministry maintains value-added tax (VAT) at 7% for another year. (Bangkok Post, 4/7/16)
Slight inflation in June suggests 1 percent for 2016 — WITH A STEADY rise in the Consumer Price Index, inflation for the whole year should be in positive territory, at around 1 per cent, on increasing fuel and food prices, the Commerce Ministry reported yesterday. The ministry reported that inflation in the first half of this year was slightly negative at minus-0.09 per cent, after June’s CPI edged up 0.38 per cent year on year, the third consecutive month of positive inflation. Month-on-month inflation was 0.03 per cent on higher fuel and food prices, the latter due to a lower supply of agricultural crops. (The Nation, 4/7/16)
BoI upbeat on reaching B700bn — The Board of Investment (BoI) is confident that real investment value this year will reach the targeted 700 billion baht after the first-half level totalled 300 billion baht. (Bangkok Post, 5/7/16)
US: ISM manufacturing rises in June; construction spending falls in May — The pace of growth in the U.S. economy’s manufacturing sector increased in June, according to an industry report released on Friday. In a separate report, U.S. construction spending fell for a second straight month in May. The Institute for Supply Management (ISM) said its index of national factory activity rose to 53.2 from 51.3 the month before. The reading was above expectations of 51.4 from a Reuters poll. (CNBC, 1/7/16)
China Caixin manufacturing PMI slips in June — BEIJING–The Caixin China manufacturing purchasing managers’ index, a private gauge of nationwide factory activity, fell to 48.6 in June from 49.2 in May, Caixin Media Co. and research firm Markit said Friday. The fall in the figure points to a further deceleration in China’s manufacturing activity and marks the 16th month in a row that the index has languished in contractionary territory. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above that level indicates an expansion. (Market Watch, 30/6/16)
Growth in China’s services sector speeds up in June-official PMI — The official nonmanufacturing Purchasing Managers’ Index (PMI) rose to 53.7, compared to the previous month’s reading of 53.1 and well above the 50-point mark that separates growth from contraction on a monthly basis. (Reuters, 30/6/16)
UK construction battered in June by Brexit fears –PMI — Britain’s construction industry suffered its worst contraction in seven years in June as concern grew about a referendum on European Union membership, according to a survey that was mostly conducted before Britain voted on June 23 to quit the EU. Financial data company Markit said on Monday its construction Purchasing Managers’ Index plunged to 46.0 in June from 51.2 in May, its lowest level since June 2009, in what could be a sign of worse to come. (Bangkok Post, 5/7/16)
BOJ gloomier on consumption, warns of hit from Brexit — The Bank of Japan cut its assessment for two of Japan’s nine regions and said the market turmoil sparked by the Brexit vote could hurt consumer sentiment, signaling concern a strong yen and weak spending could derail a fragile economic recovery. The central bank also warned that an increasing number of Japanese firms were delaying price hikes on slumping demand, acknowledging that its massive money printing has not eradicated Japan’s sticky deflationary mindset. (Reuters, 7/7/16)
U.K. manufacturing production falls back in May, still beats consensus — Manufacturing production in the U.K. fell in May, underlining concern about the country’s economic outlook, official data showed on Thursday. In a report, the U.K. Office for National Statistics said that manufacturing production decreased by a seasonally adjusted 0.5% in May, better than expectations for a decline of 1.0% and following a gain of 2.4% a month earlier that was revised from an initial 2.3% advance. (Investing.com, 7/7/16)
