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ASEAN manufacturing PMI slows further in June: S&P
Thailand continued to lead the pack while manufacturing conditions in Malaysia and Vietnam deteriorated further.
Factory activity in seven Southeast Asian nations slowed further in June as strong new orders were not enough to lift softening production, according to the closely-watched survey by S&P Global.
The headline S&P Global’ ASEAN manufacturing purchasing managers’ index (PMI) edged down to 51 last month from 51.1 in May, marking the second consecutive month of lower growth and its weakest increase since March.
While the index remained well above the 50 neutral mark that separates expansion from deterioration, S&P said last month only saw “modest” improvement in manufacturing conditions across the region.
This was attributed to the growth in manufacturing production hitting a six-month low even as factory orders picked up the pace last month.
“Sustained increases in new orders and output encouraged firms to raise their buying activity,” Maryam Baluch, an economist at S&P, said in a note. “With supply chains improving, there were further signs of easing inflationary pressure.”
Thailand remained the leader of the pack last month with a 53.2 reading, although its headline figure continued to fall from the record high in April.
S&P said Singapore (52.7) and Indonesia (52.5) recorded stronger improvements in their manufacturing sectors last month compared to May – the only two countries to do so. Factory conditions in
The Philippines and Myanmar both saw modest improvements last month, while manufacturing conditions in Malaysia and Vietnam continued to deteriorate for the tenth and fourth month running, respectively.
“Looking ahead, the region continues to fare well despite the post-COVID boom subsiding. Lingering global economic uncertainty and policy rate hikes worldwide map a challenging road ahead,” Baluch added.
