S&P PMI: 15 Asian manufacturing sectors expand in August

Asian manufacturing sector continued to grow in August 2024, with 15 out of 18 sectors reporting growth. This is consistent with the previous month’s data according to the latest S&P Global Asia Sector PMI report released on Wednesday.

Software & Services maintained its position as the strongest performer, securing the top spot for the fifth time in the last six survey periods. Transport replaced banks in second place, according to the report.

Financials continued to lead in performance for the second consecutive month, with all underlying segments showing strong growth in August. Real Estate saw the fastest growth in 14 months.

The basic materials category contracted for the first time in eight months, due to slight output declines at chemicals and metals & mining. However, the forestry & paper products sector saw an increase in production for the first time year-to-date.

Pharmaceuticals & Biotechnology was the only sector that experienced a decrease in activity in August, marking the first decline since January. However, the contraction was minimal.

In August, the demand outlook improved with 16 sectors showing growth in new businesses, the highest in 18 months. Chemicals and metals & mining were the only sectors with declining demand.

Despite the improving demand trends, the labour market did not fully reflect this positive development. Only 11 sectors increased their staffing levels, and more than half of those sectors experienced a slowdown in the rate of job creation.

Attribution: S&P Global Asia Sector PMI report

Subediting: M. S. Salama