ANN/THE STRAITS TIMES – Asia’s manufacturers remained under pressure in December as activity continued to contract under the weight of slowing global demand.
Several purchasing managers’ indexes (PMIs) were in negative territory across the region.
The S&P Global PMI reading for Vietnam fell to 46.4 from 47.4 in November, its lowest reading since September 2021. A reading above 50 indicates expansion from the previous month, while anything below indicates contraction.
New orders for Vietnam also recorded the worst rate of contraction since September 2021.
The country’s manufacturing sector is vulnerable to weakening orders in key markets such as China, Europe and the United States (US), according to economics director at S&P Global Market Intelligence Andrew Harker.
“Securing new work is likely to remain difficult until there is a pickup in these markets, with a number of firms indicating that they expect demand to remain subdued in the near term at least,” he said in a release on Vietnam.
Malaysia’s December PMI fell to 47.8 from 47.9, its lowest reading since August 2021.
Of the readings released yesterday, the Philippines was a standout, with activity rising to 53.1 from 52.7, its highest reading since June 2022.
The manufacturing sector was aided in its recovery in 2022 by the release of pent-up demand following the pandemic, said S&P economist Maryam Baluch in a statement on the Philippines.
“However, challenges in the form of supply chain disruption and inflationary pressures remain an ongoing concern to the sector and could potentially threaten growth prospects in 2023,” Baluch said.
