Free Trial

Domestic Demand Drives New Orders Growth

ASIA

The S&P Global ASEAN manufacturing PMI for April eased 0.5 points to 51.0 indicating that there was growth in the sector but that it eased. In addition, the outlook is weak. However new orders growth improved to its strongest since mid-2023 but foreign orders continued contracting. There was lower employment for the first time in 6 months. While costs rose “sharply”, the increase wasn’t passed on in full. A number of countries saw declining PMIs but the Philippines recorded the largest improvement. Indonesia and the Philippines are driving ASEAN manufacturing activity.

  • Indonesia’s manufacturing PMI eased to 52.9 from 54.2 to be below the Q1 average with output and orders growth slower. Export orders were “subdued”. Inventories rose in anticipation of a pickup in output despite confidence in the outlook falling to its lowest in 4 years. There was a “broad-based” rise in raw material costs and the weak rupiah boosted imported inflation. Manufacturers passed these onto customers and inflation is “only slightly lower than March’s 21-month high”.
  • Thailand continued to be the region’s underperformer with the PMI declining to 48.6 from 49.1, indicating that activity contracted at a faster pace at the start of Q2. It has been negative for 9 straight months and new orders for 10. Export sales are at their weakest for over 3 years. Confidence is above the pre-Covid averages though and employment stabilised suggesting activity may improve. Cost and selling pressures were below average in April.
  • Manufacturing improved in the Philippines with the PMI rising to 52.2 from 50.9 in March driven by a pickup in orders growth, which drove increased purchasing and hiring. Export orders also improved. Inflationary pressures were restrained which is good news for BSP.
  • See S&P Global PMI releases here.
ASEAN S&P Global manufacturing PMIs

Keep reading...Show less
294 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The S&P Global ASEAN manufacturing PMI for April eased 0.5 points to 51.0 indicating that there was growth in the sector but that it eased. In addition, the outlook is weak. However new orders growth improved to its strongest since mid-2023 but foreign orders continued contracting. There was lower employment for the first time in 6 months. While costs rose “sharply”, the increase wasn’t passed on in full. A number of countries saw declining PMIs but the Philippines recorded the largest improvement. Indonesia and the Philippines are driving ASEAN manufacturing activity.

  • Indonesia’s manufacturing PMI eased to 52.9 from 54.2 to be below the Q1 average with output and orders growth slower. Export orders were “subdued”. Inventories rose in anticipation of a pickup in output despite confidence in the outlook falling to its lowest in 4 years. There was a “broad-based” rise in raw material costs and the weak rupiah boosted imported inflation. Manufacturers passed these onto customers and inflation is “only slightly lower than March’s 21-month high”.
  • Thailand continued to be the region’s underperformer with the PMI declining to 48.6 from 49.1, indicating that activity contracted at a faster pace at the start of Q2. It has been negative for 9 straight months and new orders for 10. Export sales are at their weakest for over 3 years. Confidence is above the pre-Covid averages though and employment stabilised suggesting activity may improve. Cost and selling pressures were below average in April.
  • Manufacturing improved in the Philippines with the PMI rising to 52.2 from 50.9 in March driven by a pickup in orders growth, which drove increased purchasing and hiring. Export orders also improved. Inflationary pressures were restrained which is good news for BSP.
  • See S&P Global PMI releases here.
ASEAN S&P Global manufacturing PMIs

Keep reading...Show less