MANILA – The Philippines and Singapore are the only countries in Asean that recorded improvement in manufacturing index for July 2021, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) reported Monday.
Due to the resurgence of coronavirus disease 2019 (Covid-19) in the region, the manufacturing score of Asean fell to its 13-month low to 44.6.
PMI measures the health of the manufacturing sector, with scores above 50 reflecting improvement, while below the neutral score means deterioration.
Of the seven Asean countries monitored by IHS Markit, Singapore recorded the biggest improvement of 56.3.
The Philippines’ manufacturing score last month settled at 50.4, slightly lower than June 2021’s 50.8 index.
“Although the Philippines manufacturing sector recorded another improvement in operating conditions during July, latest data revealed domestic demand and production levels were still impacted by the pandemic. Meanwhile, case numbers have moderated somewhat from earlier on in the year, but are far from under control causing some restrictions to persist,” IHS Markit economist Shreeya Patel said.
On the other hand, manufacturing indices of Myanmar fell to 33.5; Indonesia, to 40.1; Malaysia, to 40.1; Vietnam, to 45.1; and Thailand, to 48.7.
These countries have been experiencing an increase in Covid-19 cases amid the spread of the more infectious Delta variant.
Moreover, Patel said the vaccination efforts in the Philippines have provided a boost in the country’s economic outlook, pointing out the encouraging levels of buying input and rising stock volumes of manufacturers.
“Nevertheless, domestic demand must improve throughout the second half of the year to help underpin growth in 2021,” she added.
Meanwhile, producers’ outlook in July rose to its four-month high. (PNA)
