ASEAN manufacturing conditions improve at start of 2018Staff Writer | February 5, 2018
The ASEAN manufacturing economy started 2018 on a positive note, with the Nikkei ASEAN Manufacturing Purchasing Managers’ Index (PMI) indicating a return to growth in January after a subdued end to last year.
ASEAN Nikkei ASEAN Manufacturing PMI
Renewed increases in new orders and employment were key factors boosting the headline index, alongside a further rise in production.
However, rates of growth were marginal in all three cases.
January data showed that the upturn was relatively broad-based, with five of the seven countries covered by the survey reporting an improvement in business conditions, up from four at the end of 2017.
Only Indonesia and Singapore failed to see an improvement in sector conditions.
Nikkei ASEAN Manufacturing PMI National Manufacturing PMI Vietnam displaced the Philippines to lead the growth rankings across the region at the start of 2018 as growth in its manufacturing sector picked up to a nine-month high.
In contrast, the Philippines saw a markedly slower improvement in manufacturing operating conditions, falling from the top position to tie with Myanmar in second place.
Thai manufacturers registered a slightly quicker pace of improvement in operating conditions, while Malaysia returned to growth in January after business conditions were largely stagnant in December.
Indonesia saw broadly unchanged manufacturing conditions while Singapore’s factories reported a slower, albeit still solid, rate of deterioration.
Overall client demand improved in January, with survey data suggesting that higher domestic demand was a key reason for increased new orders. ■