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Cambodia: Economists predict better times ahead for business
Data out this week may add to evidence that the region’s manufacturers are getting more confident as domestic demand and exports recover from the impact of the Coronavirus.
China’s Purchasing Managers Index is forecast to rise to 51.4 this month, from 51.0 in May, according to Moody’s Analytics. The figures are released tomorrow.
The PMI indicates sentiment among manufacturers with a reading above 50 indicating a shift towards optimism.
The Bank of Japan releases its widely watched Tankan survey on Thursday.
Moody’s says the Large Manufacturers Index probably rose to 11 in the last three months, from five in the first quarter. The Tankan is the largest survey of the sentiment of Japanese companies. A positive reading indicates optimists outweigh pessimists on the short-term outlook for the economy.
“Non-manufacturing is improving at a slower pace, reflecting sluggish domestic demand despite the pending Olympics,” Moody’s says.
Asian economies are gearing up for higher global demand as vaccination campaigns allow governments around the world to ease Coronavirus lockdowns.
Singapore’s industrial production jumped by 30 percent last month compared with May 2020, the strongest expansion in a decade.
South Korea’s exports continued to grow this month, up by 28.5 percent in the first 20 days of the month. They surged 52 percent in the same period in May. Imports through June 20 were even higher than the previous month, growing by 29.1 percent.
Cambodian exports rose by 17 percent January-May, helped by strong overseas demand for non-agricultural products such as electronic components, bicycles and solar panels.
Price rises across Asia are also under the spotlight this week as South Korea releases its June Consumer Price Index.
Annual inflation likely inched up to 2.7 percent in June from 2.6 percent in May, Moody’s says. Last week Singapore said inflation climbed to 2.4 percent in May, following a 2.1 percent increase in April.
Cambodia’s consumer prices are forecast to rise for the third consecutive year, up to 3.1 percent, from 2.8 percent in 2020, according to a government report last month.
A rise in international oil prices is expected to fuel inflation, the Ministry of Foreign Affairs and International Cooperation said in its macroeconomic situation report.
Source: https://www.khmertimeskh.com/50883246/economists-predict-better-times-ahead-for-business/