Asian business activity remains broad-based in July – PMI

Asia witnessed widespread economic growth in July across 15 out of 18 sectors, as shown by the latest S&P Global Asia Sector PMI on Tuesday.

Software and Services sector emerged as the standout performer for the fourth time in the past five months.

The sector witnessed an accelerated pace of growth, driven by a strengthening demand environment. New order growth within this sector was the most robust across all industries and the quickest in seven months.

The banking sector also experienced a notable uptick in activity, marking its strongest performance in four months. Other financial services, including insurance and real estate, expanded at a faster, albeit modest, pace.

However, there were signs of weakness within the manufacturing sector. Machinery & Equipment and Technology Equipment contracted for the first time in eight and three months, respectively.

Forestry & Paper Products also registered a decline, albeit minimal. While the remaining manufacturing sectors continued to grow, the rate of expansion slowed compared to June.

Employment conditions remained positive, with 13 out of 18 sectors adding to their workforce. Even in sectors that experienced job cuts – Construction Materials, Technology Equipment, and Healthcare Services – the reductions were minor.

On the price front, cost inflation eased for most sectors. Additionally, Automobiles & Auto Parts and Banks reported declines in output prices.

Attribution: S&P Global Asia Sector PMI report