Jakarta: The downturn in the ASEAN manufacturing sector continued into October 2020, according to latest IHS Markit Purchasing Managers’ Index (PMI™) data.
At 48.6 in October, the headline PMI was up slightly from September 2020's reading of 48.3, but still below the crucial 50.0 threshold and indicative of a moderate deterioration in the health of the ASEAN goods producing sector.
At the national level, four of the seven constituent countries registered a deterioration in conditions during October.
The sharpest contraction was recorded in Myanmar, where the headline index dropped to a near-record low (30.6) and signalled a rapid deterioration in the health of the sector.
Meanwhile, Vietnam saw sustained growth in October, with the headline PMI (51.8) signalling a moderate rate of expansion.
Operating conditions deteriorated for the eighth month running, although the rate of decline did ease slightly on the month and was mild. Driving the latest decline were further contractions in both output and order book volumes, with the rates of reduction slowing only slightly and remaining modest overall.
"Meanwhile, with demand still muted and capacity pressures weak, firms continued to cut back on workforce numbers. The rate of job shedding was little-changed on the month and solid overall," said IHS Markit Economist Lewis Cooper in a press release issued on Tuesday.
Nonetheless, firms remained optimistic of the 12-month outlook for output. In fact, the level of positive sentiment was the highest since January.
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