Despite Persian Gulf troubles, ASEAN manufacturers logged stronger new orders and boosted production in May, reported S&P Global on Tuesday.
The ASEAN manufacturing purchasing managers index (PMI) posted at 51.5 in May, up from 50.7 in April, and striking above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly surveys.
The ASEAN PMI logged in positive territory for the 11th-straight month, as stronger domestic demand offset sluggish export orders.
The S&P Global ASEAN PMI is a composite of national reports from 2,100 manufacturers in Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
After somewhat lagging in the three previous months, ASEAN manufacturers reported a "solid rise in new orders" in May, although "export sales declined for a third consecutive month," explained S&P Global.
Despite improving orders and rising production, ASEAN factory managers kept a tight rein on payrolls in May. Factory sector employers "remained cautious about expanding employment, with May showing a slight decline in jobs," noted S&P Global.
Manufacturers also faced rising costs in May, and responded by raising charges on customers. Both "cost burdens and charges rose at substantial and historically marked rates," said S&P Global.
With orders improving, ASEAN factory managers in May were more confident in their year-ahead outlooks. Business "confidence regarding output over the coming 12 months improved further to a four-month high, suggesting that firms anticipate continued production growth," said S&P Global.
But global events still tempered views. "However, ongoing trade disruptions and inflationary pressures, driven by the current war, will continue to act as headwinds to growth," advised S&P Global.
ASEAN survey responses were collected by S&P Global from May 12 through May 20.
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