Growth rates for both output and new orders softened, but were solid overall. Purchases rose at a weaker rate, while staffing levels saw a slight decrease.
Price pressures eased, and business confidence remained close to the recent high observed in February.
The S&P Global ASEAN manufacturing purchasing managers’ index (PMI) fell from 51.5 in February to 50.8 in March.
The fifteenth consecutive monthly improvement in manufacturing conditions was historically strong, although weaker than seen in the month prior, S&P Global Ratings said in a release.
Output rose for a sixth straight month. The rate of increase was largely consistent with that of new orders, which has experienced growth in each of the last 13 months.
Though solid, the latest upticks were slightly weaker than the previous month.
Firms in turn responded by adjusting their buying and hiring activity in March. Purchases were raised at a weaker pace.
Meanwhile, the recent run of job creation in the ASEAN manufacturing sector that began at the start of the year came to a close in March. In fact, a slight reduction in staffing numbers was recorded.
Additionally, firms reported continued pressures on capacity at the end of the first quarter as indicated by the seasonally-adjusted backlogs of work index posting above the 50 no-change mark for a thirteenth straight month.
Levels of pre-production items were broadly left unchanged on the month. However, holdings of finished goods were depleted for a twenty-third month running, indicating that firms used stocks to meet demand requirements.
Cost burdens rose strongly for ASEAN manufacturers in March. The rate of input price inflation eased on the month to the slowest since July 2023. Subsequently, charges were also raised at a moderated pace that was modest overall. In fact, the rate of charge inflation eased to a 21-month low.
Firms were strongly optimistic in March, expecting production levels to rise in the coming 12 months.
ALCHEMPro News Desk (DS)
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