Fashion
ASEAN manufacturing momentum eases in April amid rising cost pressures
Growth in output and new orders softened, with production nearing stagnation. New orders rose at the slowest pace in eight months, while export orders declined for a second straight month, reflecting a weaker trade environment, S&P Global said in a press release.
ASEAN manufacturing growth slowed in April, with the S&P Global Manufacturing PMI falling to a nine-month low of 50.7.
Output and new orders weakened, export sales declined further, and employment fell for the first time in eight months.
Supply chain pressures and rising operating costs intensified inflation.
Despite weaker momentum, firms remained optimistic.
Supply-side constraints intensified during the month. Delivery times lengthened to a 17-month high as firms increased purchasing activity, putting pressure on supply chains. As a result, inventories of both inputs and finished goods declined, indicating firms relied on existing stocks to meet demand.
Employment conditions also weakened, with staffing levels falling for the first time in eight months, albeit marginally. Meanwhile, backlogs of work continued to rise, suggesting capacity pressures persist.
Inflationary pressures strengthened further. Input costs rose at the fastest pace since March 2022, prompting firms to increase output prices at the sharpest rate in 49 months.
Maryam Baluch of S&P Global Market Intelligence said ASEAN manufacturing remained in expansion territory in April, though growth momentum weakened as output neared stagnation, demand softened, exports fell faster, and employment declined. She noted that price pressures intensified further amid rising operating costs.
“While manufacturing firms in the ASEAN region remain optimistic about continued production growth in the coming year, the overall trajectory will remain dependent on external factors, notably the ongoing conflict in the Middle East, which is also shaping the inflation picture,” added Baluch.
Fibre2Fashion News Desk (SG)