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Asean manufacturing PMI falls for third straight month in August 2021
KUALA LUMPUR, Sept 1 ― The Asean manufacturing sector remained in a downturn for the third straight month in August 2021, with the headline Purchasing Managers’ Index (PMI) easing to 44.5 from 44.6 in July 2021, as rising Covid-19 cases and lockdown measures continued to impact the sector.
In a statement today, IHS Markit said operating conditions declined sharply again amid further rapid falls in factory production and new orders, while sentiment among goods producers towards output over the year ahead slipped to a 13-month low.
IHS Markit economist Lewis Cooper said for the first time since May 2020, contractions were recorded across each of the seven constituent nations last month, highlighting the severe impact of rising Covid-19 cases and stronger lockdown measures across the region.
“The fastest rates of decline were recorded in Myanmar (PMI at 36.5), Vietnam (PMI at 40.2) and Malaysia (PMI at 43.4),” he said.
Cooper noted that the Covid-19 outbreaks and stricter lockdown measures continued to adversely impact the Asean manufacturing sector in August 2021, which remained firmly mired in a downturn.
He said client demand continued to retreat, while factory production declined rapidly again, subsequently, companies cut back on staffing, despite a record upturn in backlogs, while business confidence moderated to a 13-month low.
“Overall, the latest data provided little good news. Companies were still confident overall of higher output in 12 months’ time, however, with firms hopeful that once restrictions are eased the sector will once again rebound,” he added. ― Bernama