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ASEAN manufacturing sector slips into decline in October

Staff Writer | November 4, 2016
Business conditions in the ASEAN manufacturing sector slipped into decline in October, after improving in the previous two months.
Korea worker
Asia   Nikkei ASEAN Manufacturing PMI
The Nikkei ASEAN Manufacturing Purchasing Manager’s Index (PMI) recorded 49.2 in October, down from 50.5 in September.

The headline index was the lowest in 11 months. Deterioration in both production and total new orders drove the headline figure lower.

In particular, new business inflows contracted at the fastest rate since November 2015. A quicker pace of decline in export sales was partially behind the weaker performance.

Meanwhile, a further fall in pre-production inventory levels also acted as a drag on overall operating conditions. Reduction in client demand prompted a marginal drop in employment.

As manufacturing new orders decreased in ASEAN, firms were able to continue working through their backlogs, which saw another decline in October.

Meanwhile, both input costs and output prices continued to rise in October. However, both rates of inflation eased from the previous month.