Demand improved in the region, albeit at the slowest rate for ninth months, while output was raised for two months running and at a stronger pace.
However, while firms recorded a fresh rise in purchasing activity to support production requirements, employment fell back into contraction territory for the first time in three months in the region.
The ASEAN manufacturing sector showed a modest improvement in operating conditions in November this year, according to S&P Global.
Demand improved in the region, albeit at the slowest rate for ninth months, while output was raised for two months running and at a stronger pace.
Firms were more cautious to commit to new workers, thereby resulting in a fresh decline in manufacturing employment.
The turn of the month also revealed intensifying inflationary pressures, with cost burdens and charges rising at strongest rates since August.
The headline S&P Global ASEAN manufacturing purchasing managers’ index (PMI) increased for the first time in six months, with the latest reading of 50.8 in November (it was 50.5 in October) marking an eleventh successive improvement in operating conditions.
The rate of improvement was slight overall, despite measuring the strongest in three months.
The uptick in the headline index was partly supported by a solid and stronger rise in production at ASEAN manufacturers in November. The rate of growth quickened month on month.
However, demand trends cooled, with growth in new orders further waning from July’s recent high and signalling only a marginal expansion, which was the weakest in the current nine-month sequence of growth.
Cooling demand trends meant that firms were more cautious to commit to new workers, thereby resulting in a fresh decline in manufacturing employment.
However, higher output meant that companies renewed their purchasing activity, following a fractional fall in the month prior.
Confidence for the year ahead outlook for output improved in November after hitting a five-month low in October. While more manufacturers put stock in future expansions, as has been the case for just more than two years, the degree of confidence was historically muted.
Fibre2Fashion News Desk (DS)
