The headline S&P Global ASEAN manufacturing PMI slipped to 50.5 in September from 51.1 in August, posting above the neutral 50 threshold for a ninth straight month.

Output levels in the area contracted for the first time in three years, albeit only with a shallow decline.

Meanwhile, growth in new orders slowed on the month in September, with the latest uptick the least pronounced in the current seven-month sequence of expansion. The upturn was hindered by consistently underperforming trade volumes, which have been declining since June 2022. Moreover, the latest drop in new export sales was sharp and the most marked in over three years.

Weakening demand trends coincided with a further cooling of inflationary pressures. Cost burdens and output charges rose at the weakest paces in 13 and 15 months respectively, S&P Global said in a release.

Weaker demand trends led to a fresh decline in output, with ASEAN goods producers experiencing their first drop in three years.

However, the overall rate of contraction was minimal. While manufacturers continued to raise their purchasing, the rate of growth also softened from August and was only mild.

The rate of input price inflation cooled in September since August, with cost burdens rising at the weakest pace in 13 months.

Confidence in the outlook for output registered an improvement, with optimism reaching its highest level since the start of the year. ASEAN manufacturers are hopeful that output will grow over the next 12 months.

Fibre2Fashion News Desk (DS)