ASEAN manufacturing PMI rises to 50.1 in July

This ends the three-month sequence of declining sector health.

The ASEAN manufacturing sector showed a slight improvement in July, with the Purchasing Managers’ Index (PMI) rising to 50.1 from 48.6 in June, according to S&P Global.

This concludes the three-month sequence of declining sector health that preceded it.

Manufacturers in the region recorded an uptick in production levels, and demand trends also showed signs of recovery, as new orders declined only marginally. This marks the softest decrease in the current four-month sequence of contraction.

Purchasing activity remained stable after declining for three consecutive months, whilst reductions in staffing were implemented at a slower pace.

Turning to prices, inflationary pressures intensified, with cost burdens and charges growing at the fastest rates in four and five months, respectively.

Despite the short-term improvement, manufacturers remain cautious. Business confidence dropped to its lowest point in five years, and expectations for future output have weakened.