Wahyu Dwi Anggoro
The only other country to record growth across its manufacturing sector was Thailand. However, the pace of improvement cooled further from April’s record high. Notably, at 50.7, the PMI signalled the
joint-weakest pace of expansion since the current period of recovery began in January 2022.
The countries that reported a deterioration in conditions were Vietnam (PMI at 48.7), Singapore (48.5) and Malaysia (47.8).
“PMI data for the start of the third quarter highlighted a sustained slowdown across the ASEAN manufacturing sector. Both output and total new orders expanded at weaker rates than in June. Moreover, data suggested that growth was predominantly driven by domestic markets, as new orders from overseas contracted at an accelerated pace, said Maryam Baluch, Economist at S&P Global Market Intelligence, in a media release on Wednesday (2/8/2023).
“Moreover, the outlook for output seems to have dimmed, as signalled by the Future Output Index slumping to a three-year low. Lingering global market uncertainty, China’s softening post-COVID recovery, and relatively subdued domestic demand all weighed on sentiment," the economist added.
Vietnamese manufacturers signalled a fifth successive monthly deterioration in operating conditions during July.
