Manufacturing output maintained its momentum in the last month of 4Q17, with the December print coming in at 2% y/y, and up 1.1% m/m. It must, however, be remembered that the December figure comes off a low base. Food and beverages, petroleum, basic iron and steel and motor vehicle and parts manufacturing were the main drivers of growth, expanding by 1.5% y/y, 3.3%, 3.6% and 8% respectively and adding 2.2 pps. Weakness persisted in clothing and wood product manufacturing, with these subcomponents having contracted for 9 and 12 consecutive months respectively. As corroborated by recent vehicle export numbers, it seems vehicle production is back on track having expanded by 10.6% y/y. While a welcome end to the year, the industry remains exposed to weak domestic demand and a lack of export competitiveness. Despite production being up 1.5% q/q the performance is unlikely to be enough to prevent the sector from contracting by approximately -0.5% on an annual basis. We expect a slightly better year for the industry in 2018 as domestic demand begins to recover, and although the PMI remains below the 50 mark, the expectations sub-index points to a mild upswing.