ASEAN manufacturing PMI rises in July on stronger demand: S&P

ASEAN manufacturing PMI rose to 52.8 in July from June's 50.5, marking its strongest improvement in five months. New orders and output expanded at the fastest rates since February, indicating stronger factory momentum at the start of the third quarter. Manufacturers increased purchasing activity sharply, while delivery times lengthened moderately. Stocks of purchases rose for the first time in four months, and employment rose for the first time since March, though backlogs of work grew solidly, the fastest since October 2022. Business confidence strengthened, with manufacturers most optimistic about output growth since April 2023, expecting production to rise over the coming year. The sector appeared to recover from a softer patch between March and June, influenced by the ongoing conflict in the Middle East. Country-level data from Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam showed improved operating conditions, except for Myanmar, following a relatively weak second quarter. Performance was comparable to early-year levels but softer than the record seen in February. Stronger demand encouraged firms to increase purchasing and raise employment for the first time in four months.