ASEAN Manufacturing Sector's Growth Slows in October 2022

Jakarta: Growth softened across ASEAN manufacturing firms after ending the third quarter strongly, according to the latest S&P Global PMI survey data.
 
At 51.6 in October, down from 53.5 in September, the headline PMI signalled the slowest improvement in operating conditions across the region since the current series of expansion began in October 2021.
 
A majority of the ASEAN constituents recorded an improvement across their manufacturing sector during October, with the exception of Myanmar and Malaysia. Singapore remained the strongest performer for the eleventh successive month. However, adjusted for seasonality, the headline PMI fell to 56.0 in October. While the indicated expansion was sharp overall, it was also the weakest since March.

The Philippines moved up the ranking table, registering the second fastest growth of all seven nations. Despite the rate of expansion (52.6) easing marginally from September’s three-month high, goods producers reported a modest improvement in the health of the manufacturing sector.
 
The latest upturn across Indonesian manufacturers also lost momentum during the latest survey period (51.8). Similarly, Thai manufacturers registered a slower upturn than in September. In fact, the pace of increase was the second-softest in the current sequence of growth that began in January (51.6).
 
Growth was sluggish across Vietnam’s manufacturing sector (50.6). The latest rise ticked down from September to the slowest in the present 13-month series of expansion.
 
Elsewhere, Malaysia and Myanmar reported contractions for the second and sixth consecutive months, respectively. Malaysian manufacturers saw a quicker downturn during October (48.7). Adjusted  for seasonality, the headline PMI for Myanmar increased from September’s recent low, but continued to signal a strong deterioration across the sector (45.7). 
 
"Latest PMI data signalled a slowdown in growth across the ASEAN manufacturing sector. Operating conditions improved at the weakest rate in the current 13-month sequence of expansion. Softer upturns were noted for both output and new orders. While expansion in production levels remained resilient, factory orders grew sluggishly during October," Maryam Baluch, Economist at S&P Global Market Intelligence said in a media release on Wednesday.
 
"The slowdown also resonated in weak hiring activity and a softer expansion in purchasing levels, with firms noting rates of growth ticking down from the record speeds seen in the preceding month," the economist stated.
 
Despite ASEAN manufacturers reporting subdued rates of growth during the latest survey period, future expectations picked up, with the latest data signalling the strongest optimism since April 2016. According to panellists, positive expectations were underpinned by improving demand conditions. 
 
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