PMI Manufacturing in Indonesia Remains Expansive in ASEAN

S&P Global Market reported that the manufacturing Purchasing Manager's Index (PMI) for Southeast Asian (ASEAN) countries stood at 52.2 in July 2022, up from 52.0 the previous month.

An index above 50 indicates that manufacturing activity is still expanding. Conversely, an index below 50 indicates contraction.

The ASEAN PMI data for July 2022 signals an improvement in ASEAN manufacturing activity. Output and new orders increased, although the rate of increase slowed slightly.

S&P Global Market Intelligence economist Maryam Baluch said the July 2022 PMI data shows growth in the ASEAN manufacturing sector. "The easing of community activity restrictions during the pandemic has boosted production and sales volume," she said.

Two countries had manufacturing PMIs above the ASEAN average: Singapore and Thailand. Of the seven ASEAN countries, four saw their manufacturing PMIs rise and three fell. One country, Myanmar, experienced a contraction in its manufacturing PMI.

Singapore led the improvement in ASEAN manufacturing. The Lion City's PMI stood at 58 in July 2022, up 0.5 basis points (bps) from the previous month.

This was followed by Thailand's manufacturing PMI at 52.4, up 170 bps from the previous month. Next was Indonesia's manufacturing PMI at 51.2, up 20 bps from the previous month.

This was followed by Vietnam's PMI at 51.2 last month, down 280 bps from the previous month. Then came the Philippines' PMI at 50.8, down 300 bps from the previous month. Malaysia's PMI stood at 50.6, up 20 bps from the previous month, while Myanmar's PMI was at 46.5, down 170 bps from the previous month.