Friday 29 Mar 2024
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KUALA LUMPUR (Sept 1): The ASEAN manufacturing sector remained in a downturn during August as rising Covid-19 cases and lockdown measures continued to impact the sector.

According to the latest data of the IHS Markit Purchasing Managers’ Index (PMI) released today, the headline PMI was registered at 44.5 in August, down slightly from 44.6 in July, signalling a third straight month of deterioration in the health of the ASEAN manufacturing sector.

The data showed that operating conditions declined sharply again amid further rapid falls in factory production and new orders, while sentiment among goods producers towards output over the years ahead slipped to a 13-month low.

IHS Markit reported that for the first time since May 2020, each of the seven constituent nations recorded deterioration in conditions during August, with Myanmar having the steepest pace of contraction by registering a headline figure of 36.5.

This was followed by Vietnam, which registered a headline PMI at 40.2, its lowest since April 2020, amid the ongoing Covid-19 pandemic.

Elsewhere, Malaysia and Indonesia recorded sustained deterioration, with their headline indices registered at 43.4 and 43.7 respectively, indicative of sharp deterioration in the health of the respective manufacturing sectors.

Renewed contraction was registered in Singapore and the Philippines, where the former’s headline index (44.3) moderated noticeably from July’s more-than-eight-year high and sank to the lowest since September 2020. The latter’s latest reading (46.4) signalled the first deterioration in conditions since May and the sharpest deterioration in 15 months.

Meanwhile, Thailand’s headline PMI dipped further below the 50.0 mark in August at 48.3, which signalled the quickest rate of decline in three months, but one that was only marginal.

IHS Markit economist Lewis Cooper reviewed the latest survey results, saying: “Covid-19 outbreaks and stricter lockdown measures continued to adversely impact the ASEAN manufacturing sector during August, which remained firmly mired in a downturn.”

He noted that contraction recorded across each of the seven constituent nations for the first time since May 2020 highlighted the severe impact of rising Covid-19 cases and stronger lockdown measures across the region.

“Overall, the latest data provided little good news. Companies were still confident overall of higher output in 12 months’ time, however, with firms hopeful that once restrictions are eased, the sector will once again rebound,” he added.

Edited BySurin Murugiah
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