Factory activity contracts in Indonesia, Malaysia in Oct, Vietnam cools-PMI
(Refiles to fix formatting of tabular information)
SINGAPORE, Nov 1 (Reuters) - Nov 1 (Reuters) - Factory
activity contracted in Indonesia and Malaysia in October, while
growth in Vietnam cooled, according to IHS Markit purchasing
managers' indexes released on Tuesday.
See below for more details.
INDONESIA:
Data from the Nikkei Indonesia Manufacturing Purchasing
Managers' Index, compiled by IHS Markit, for October. Readings
above 50.0 signal an improvement in business conditions.
DATA
OCT SEPT AUG
48.7 50.9 50.4
CONTEXT
- Having improved in each of the previous two months,
Indonesia's manufacturing deteriorated moderately in October as
falling orders from domestic and external markets led businesses
to reduce output, purchasing levels and employment.
- New orders fell at a solid pace for the first time since July
and firms cited weak underlying demand and unfavourable weather
as the reason. The sub-index reading for new orders was 46.7.
- Businesses bought less materials and shed jobs during
October, but the rate of contraction was marginal.
- Average cost burdens by goods producers rose, with prices of
oil, chemicals, plastics, rubber and paper reportedly up, albeit
still below its long-run average.
Pollyanna De Lima, an economist at Markit, said:
"Bleak demand was the culprit, with firms reporting weakness
in both the domestic and external markets. In light of Bank
Indonesia's decision to ease monetary policy for a second
straight month, manufacturing growth may be resumed as we
approach the year end."
MALAYSIA:
Data from the Markit Malaysia Purchasing Managers' Index for
October.
Readings above 50.0 signal an improvement in business
conditions while readings below indicate deterioration.
DATA
OCT SEPT AUGUST
47.2 48.6 47.4
CONTEXT
- Headline PMI dropped, signalling worsening operating
conditions in Malaysia's goods-producing sector. The latest
reading was the lowest since June and below the long-run series
average of 49.5.
- Production fell at a sharper rate, driven by the strongest
decline in new orders since November 2015.
- New export orders declined for the fifth month running.
However, the rate of decrease eased from September's three-month
record and was only marginal overall.
- In contrast, employment levels rose for the second month
running, albeit only marginally.
Markit economist Amy Brownbill said:
"The start of the final quarter of 2016 set off on a bad
footing for the Malaysian manufacturing sector, with operating
conditions deteriorating at a solid pace. This was driven by
falls in both output and new orders, with the latter declining
at the sharpest rate since November 2015. As a result,
manufacturers cut back on input buying at the quickest rate in
four months.
"On a more positive note, manufacturers benefited from an
easing in cost inflationary pressures, as input prices increased
at the weakest rate since July 2015. This enabled firms to lower
their charges for the first time in 21 months. Panellists also
mentioned efforts to boost sales as well as to try and improve
price competitiveness as factors behind the fall in charges."
VIETNAM:
Data from the Nikkei Vietnam Purchasing Managers' Index for
October.
Readings above 50.0 signal an improvement in business
conditions and vice versa.
DATA
OCT SEPT AUG JULY JUNE MAY APRIL MARCH FEB
51.7 52.9 52.2 51.9 52.6 52.7 52.3 50.7 50.3
CONTEXT
- Output drops to the lowest level since September 2015
- Faster rise in new orders, purchasing activity sees record
jump
- Vietnam's October PMI edged down to 51.7, the lowest since
March, showing a slowing improvement in business conditions, due
in part to a pause in output growth that ended a 10-month
sequence of growth.
- However, new orders picked up to a four-month high amid rising
demand in both domestic and export markets while purchasing
activity climbed at the fastest pace in the survey's history as
manufacturers build reserves for future production.
- Output prices saw the strongest jump since June 2014,
resulting from a higher input costs.
About the PMIs:
The data is collected by UK-based Markit Group Ltd,
and the reports are sponsored by Nikkei. The intellectual
property rights are owned by or licensed to IHS Markit. For more
details, click http://www.markit.com/information/register/reuters-pmi-subscriptions
(To read more PMI reports from around the world, click on
)
(Reporting by Gayatri Suroyo in JAKARTA, Praveen Menon in KUALA
LUMPUR and My Pham in HANOI; Editing by Kim Coghill)
