July 01, 2024 01:52 GMT
Manufacturing Activity Grows But Foreign Orders Still Negative
ASIA
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June PMIs across ASEAN were mixed but the aggregate was steady in expansion territory at 51.7 driven by orders, but foreign orders continued to contract, and output growth but S&P Global reports that input costs and selling price inflation picked up from May. Business conditions continued to improve and employment returned to growth territory. Vietnam recorded the strongest manufacturing growth in the region.
ASEAN S&P Global manufacturing PMI
Source: MNI - Market News/Bloomberg
- Indonesia’s PMI fell for the third straight month but continues to signal modest growth at 50.7, but the lowest since November 2022. Growth in orders, output and purchases all eased in June, while export orders continued to contract, which is keeping the outlook soft and employment flat. Input cost inflation remains elevated due to the soft currency and higher fuel prices, but eased moderately from May. Selling price inflation remains restrained as demand growth eases but did pick up slightly last month.
- Thailand’s manufacturing activity contracted in the 9 months to April but it grew in May and improved again in June with the S&P Global PMI at 51.7, in line with ASEAN, up from 50.3. This is the highest result since June 2023. New orders are still contracting but now only slightly driving an improvement in the outlook and employment. Costs were steady but output inflation increased but remains below average.
- The manufacturing PMI for the Philippines eased to 51.3 from 51.9 but Q2 still saw a pickup in growth. New orders slowed considerably in June though, including from overseas, and confidence is below the series average. Spare capacity drove a reduction in staffing. Cost inflation rose to its highest since February due to scarce raw materials but remains below average. While output inflation is positive, it moderated in June.
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