Private spending, farm income fuel February growth
THE THAI economy expanded in February, driven by private spending and consistently higher real farm income, according to the Fiscal Policy Office.
FPO director-general Krisada Chinavicharana said private spending last month showed signs of improvement, reflected by a 3.4-per-cent year-on-year rise in collection of value-added tax, at constant prices, levied on domestic spending and imports.
Imports of consumer products increased by 1.7 per cent.
The number of newly registered motorcycles jumped 14.9 per cent year on year for the month. The figure climbed 10.6 per cent in Bangkok and 14.9 per cent in the provinces.
The rise in motorcycle registrations came after real farm income continued to rise sharply, by 19.8 per cent year on year in February. Both agricultural production and agricultural-product prices increased.
Passenger-car sales surged by 49.8 per cent year on year last month after carmakers launched new models in January. As well, last year’s base was low as people put off purchases because of excise-tax restructuring in early 2016.
The Consumer Confidence Index for the overall economic situation increased for the third consecutive month in February to 64.3, reaching its highest level in 14 months, due partly to rises in crop prices that boosted farm income.
There were positive signs for private investment, reflected by a consistent rise in sales of vehicles for commercial purpose, up by 6.3 per cent year on year in February. Sales of 1-tonne pickup trucks went up 9.8 per cent, while imports of capital goods soared 20.4 per cent.
Although domestic cement sales in February contracted by 0.1 per cent year on year, the figure after seasonal effects inched up 2.4 per cent month on month.
February’s merchandise exports shrank in value for the first time in three months, by |2.8 per cent year on year. The key export products included agricultural, rubber and electronics products, while the main markets to which Thai exports rose included mainland China, Cambodia, Laos, Myanmar, Vietnam, Hong Kong, the United States and the European Union.
