Thailand leads ASEAN manufacturing sector with 54.8 PMI in Feb 2022

Growth largely stemmed from the strong rise in production levels. Manufacturing output increased at the quickest pace in four months, with the latest upturn extending the current run of expansion to 17 successive months. Moreover, new order inflows rose for the second consecutive month, and at a quickened pace, according to the S&P Global ASEAN Manufacturing PMI report.

Additionally, February data pointed to a further upturn in buying activity at ASEAN goods producers. The pace of increase was the fastest in five months and solid. However, holdings of both pre- and postproduction inventories fell during February, the latter for the first time since December 2021. The data therefore suggest that companies are relying on current stocks to accommodate the strong rise in production levels, despite expanding their purchasing activity at a quicker pace.

February data indicated that pressures on supply chains steadied, thereby ending a three-year period of deteriorating vendor performance. Moreover, cost pressures lessened in the month as well, with the rate of input price inflation broadly in line with the long-term average. At the same time, firms raised their output charges at the softest pace in 13 months, the report added.

However, international demand for ASEAN goods remained weak, as new business from overseas continued to contract in February. Finally, the outlook for output over the coming 12 months remained optimistic across ASEAN manufacturers in February. That said, the respective index weakened to an 18-month low and has now printed below the historical average for four successive months.

Fibre2Fashion News Desk (NB)