ASEAN manufacturing PMI slightly drops in July 2024: S&P Global

Output grew moderately in July as the ASEAN manufacturing sector continued the expansionary sequence that started in October 2021. New business intakes rose solidly, and at the fastest pace since April 2023. However, new export orders continued to fall, extending the current sequence of contraction to 26 months.

ASEAN manufacturers signalled a rise in staffing levels for the second month running, with the pace of job creation unchanged from June. The fractional improvement was in tandem with rising levels of outstanding business. The start of the third quarter was the fifth month running to note pressure on capacity, as per S&P Global.

Input prices inflated at the fastest pace since February. Higher cost burdens flowed through to rising selling charges, the pace of inflation also the most pronounced since February. This was the fourth successive month in which charges have increased at a sharper pace.

Buying activity increased modestly at ASEAN manufacturers. With demand for inputs increasing, vendor performance deteriorated at the fastest pace since January 2023. Meanwhile, holdings of inputs depleted for the first time since February and at the fastest pace since November 2023.

Volumes of finished items similarly depleted. July extended the current sequence of contraction to 15 months, although the rate of decline softened from June.

Positive sentiment was recorded again at ASEAN manufacturers. The start of the third quarter saw expectations for the next 12 months reach a four-month high.

Fibre2Fashion News Desk (DP)