ASEAN manufacturing PMI decreases in June

According to the Nikkei Manufacturing Purchasing Managers’ Index (PMI), the manufacturing PMI in ASEAN countries was down to 50 in June from 50.5 in May. This was the first time the manufacturing PMI of the region was not above 50-threshold since the beginning of this year and this was attributed to only slight increases in overall new orders and employment growth as well as a weakness in output and slower domestic demand.

The data showed that, across the region, the Philippines posted the strongest growth for the second consecutive month in June, followed by Vietnam. Thailand and Singapore also developed their businesses while Indonesia and Myanmar’s manufacturing activities retreated after posting increases in May. Malaysia recorded a sharper decrease in June in terms of manufacturing activities.

According to the data, this deceleration in the region’s manufacturing PMI resulted from a decrease in domestic demand in the region in June due to retreating total new business to a five-month low although export sales hit about 4-month high due to the supportive foreign demand.

Weak demand also caused purchasing activity to be limited and buying activity to remain flat in June from the previous month.