August Asian PMIs Mostly Lose Ground Or Remain In Contraction Territory

In contrast to the better than expected China manufacturing PMIs, the rest of Asia generally saw disappointing August manufacturing PMI outcomes.

• South Korea's PMI slipped to 48.9 versus 49.4 in July. We remain above recent lows though sub 48.0. Output rose to 47.3 from 47.2, but this was offset by lower new orders. The result is also in contrast to some modest improvement in the August export trend.
• Taiwan's PMI edged marginally higher to 44.3 from 44.1 but remains comfortably in contraction territory. Output also rose in Taiwan to 42.0 (from 39.9), but new orders were weaker.
• Thailand's PMI slipped to 48.9 from 50.7 in July, due to lower output and falling new orders. Political uncertainty has weighed on sentiment indicators in recent months.
• The Philippines PMI also eased to 49.7 from 51.9 in July. The output index falling to 50.4 from 52.7. Q2 GDP growth contracted in the Philippines, while lower bank lending is also indicating that tighter rates are impacting activity.
• Malaysia's PMI was unchanged at 47.8, while Indonesia's PMI bucked the broader trend, rising to 53.9 from 53.3, as output and new orders improved.