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Philippines: Factory activity in Asia improves in August
MANILA, Philippines — Purchasing Managers Indexes (PMIs) for manufacturing in Asia are expected to have improved in August from July as demand recovers slowly, according to London-based think tank Capital Economics.
In a research paper, the think tank said second waves of COVID-19 infection and economic scars from the pandemic would continue to weigh on economic activity globally.
PMI readings for Asia were mixed in June. Manufacturing conditions in Vietnam, Malaysia, and the Philippines weakened in July after rebounding strongly in June.
Readings for Indonesia and Thailand rose, but both remained low and consistent with continued contraction.
PMI readings in Taiwan and Korea, meanwhile, were consistent with expansion indicative of strong demand for electronics.
“Any further improvements are likely to be driven by a recovery in demand, both at home and abroad,” Capital Economics said.
“But demand for other exports is likely to see a much slower recovery as second waves and economic scars from the pandemic weigh on economic activity globally,” it said.
The headline manufacturing PMI provides a quick overview of the health of the manufacturing sector based on five indicators: new orders, output, job creation, supplier delivery times and inventories.
July marked the second month of transition of Metro Manila to the less strict general community quarantine.
While domestic demand showed signs of recovery as mobility restrictions were eased, export sales remained weak.
Source: https://www.philstar.com/business/2020/08/31/2038916/factory-activity-asia-improves-august