TOKYO -- Growth in ASEAN’s manufacturing sector eased slightly in June after reaching a near four-year high in May, according to a survey.
The Nikkei ASEAN Manufacturing Purchasing Managers’ Index, or PMI, slipped from 51.4 in May to 51.0 in June, hovering above the 50-point line separating expansion from contraction. The May figure was the highest since July 2014.
Manufacturing activity in Vietnam and Singapore continued to expand while Thailand and Indonesia moderated. Of the seven countries included in the reading, Malaysia was the only one that continued to see a decline in its manufacturing sector.
While demand conditions continued to improve in June, rising input costs are stoking concerns of inflation.
Bernard Aw, Principal Economist at IHS Markit, which compiles the survey, warned that the rising price of oil and other raw materials “could subsequently weigh on supplies and stoke stronger inflationary pressures.”
“Higher prices will then put central banks across the region on high alert” at a time when policymakers are worried over the potential impacts of rising trade tensions, he added.
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