Manufacturers play bigger role

The Office of Industrial Economics (OIE) has forecast that the contribution of manufacturers to gross domestic product this year will grow by 6.6 per cent, due mainly to higher production and sales in the automotive and electronics industries, as well as in spare parts for both industries.

The OIE recorded growth in manufacturers' contribution to GDP of 5.8 per cent last year.

Director-general Atchaka Sribunruang Brimble yesterday said the manufacturer's contribution this year could be as high as 7 per cent, following the restoration of consumer confidence and expansion of exports into new markets such as Africa, Eastern Europe and the Middle East.

She said the country's manufacturing production index grew by 11.5 per cent in the first quarter, compared with the corresponding period last year, because of higher spending power and improved domestic consumption.

The improvement was partly due to higher incomes for farmers because of skyrocketing food prices.

"Last year, domestic sales of motorcycles shrank for several months, but sales rose last quarter because of increased spending by farmers," she said.

However, the OIE expressed concern about the frozen-shrimp industry because it is facing anti-dumping measures in the United States - the industry's largest export destination.

A recent survey had shown that production in the processed-food industry in the first quarter was unchanged from that in the first quarter of 2007. Total sales in the industry had declined by 10 per cent, due mainly to lower exports of frozen shrimp to the US.