Southeast Asian Manufacturing PMI Remains Contracted in August 2021

Manufacturing activity in Southeast Asia remained contracted in August 2021. This is evident from the Southeast Asian manufacturing Purchasing Managers' Index (PMI), which remained below the 50 level.

The Southeast Asian manufacturing PMI was recorded at 44.5 in August 2021. This figure fell slightly from the previous month's 44.6.

According to the IHS Markit report, Myanmar's manufacturing PMI hit a record low in August 2021 at 36.5. It was followed by Vietnam with a manufacturing PMI of 40.2, the lowest since April 2020.

Malaysia and Indonesia's manufacturing PMIs were 43.4 and 43.7 respectively. Both countries saw an increase in their manufacturing PMI compared to the previous month.

The Philippines had the highest score among other Southeast Asian countries, but it did not reach the expansionary level. The Philippine manufacturing PMI was recorded at 46.4 in August 2021, marking the first decline since May 2021 and the sharpest in the last 15 months.

The decline in the Southeast Asian manufacturing PMI was due to a surge in COVID-19 cases and the implementation of social restrictions. In addition, operational conditions plummeted amid declining production and new orders. Meanwhile, producer sentiment towards future output fell to a 13-month low.