Period : May 2017 – April 2021
Date : 8th May 2021
Researcher : Marsella Ismail
The Purchasing Managers Index (PMI) is the measure of the current direction of economic trends in manufacturing. A reading above 50 means expansion and below 50 means contraction while 50 is no change. Below we discuss the monthly PMI of Euro Area, United Kingdom, United States of America, China, Japan, Malaysia, Singapore, Indonesia, Thailand and Philippines from the source IHS Markit Economics.
Monthly PMI of Euro Area, United Kingdom and United States of America
The monthly PMI of Euro Area, United Kingdom and United States of America have similar positive trends which shows the expansion of manufacturing sector in these countries. The PMI reading was always above 50 and continue rising. The highest PMI for the Euro Area, United Kingdom and United States of America is 62.9, 60.9 and 61.3 respectively. The PMI for these countries showed a dip around April and May 2020 when the COVID-19 pandemic started, where in the Euro Area the lowest is 39.8 in May, in the United Kingdom was 32.6 in April and in the United States of America was 33.4 in April.
Monthly PMI of Malaysia
Malaysia’s PMI rose from 49.9 in March 2021 to 53.9 in April 2021 which is the highest in 4 years since the 52.0 reading in November 2017. This is maybe due to the reopening of the economy after the ease of operating conditions after the Movement Control Order (MCO). Malaysia’s PMI has mostly been below 50 with a few months of expansion but in April 2020, the PMI fell to its lowest at 31.3 possibly due to COVID-19 and slowly rose in June 2020.
Monthly PMI of Philippines
Since May 2017, Philippines’ PMI was positive and above 50 but sharply fell in March 2020 with the reading of 39.7 and continue dipping to its lowest at 31.6 in April 2020 due to COVID-19 related issues but started to rise in the following months. Philippines’ latest PMI went into contraction to 49.0 in April 2021 from 52.2 in March 2021. This could be caused by the reimplementation of lockdowns in the country as COVID-19 cases started to rise again.
Monthly PMI of China, Japan, Singapore, Indonesia and Thailand
Meanwhile in China the latest PMI is 51.1 and was stable with the reading above 50 from May 2017 but fell in February 2020 with the lowest reading of 35.7 and slowly rose back up. In Japan, the latest PMI is 53.6 and has the lowest PMI in May 2020 with the reading of 38.4.
Whereas in Singapore, Indonesia and Thailand, the PMI showed similar trends in expansion and contraction but dipped around March to May 2020. The PMI continued rising after May 2020. The latest PMI in Singapore, Indonesia and Thailand are 50.9, 54.6 and 50.7 respectively.