Macro/ Strategy

Production increased slightly due to Lunar New Year but uncertainties prevailed

Because the Lunar New Year lasted nearly 10 days at the end of January, production activities were influenced. The Index for industrial production (IIP) in January 2025 increased slightly by 0.6% YoY (-9.2% MoM). Unlike previous months, when the manufacturing sector played a leading in the total growth with the high growth number, the sector only increased by 1.6% YoY. The water supply industry; waste management and treatment activities grew the highest compared to other industries, reaching 9.2% YoY.

The PMI continued falling to 48.9 points in January 2025 from 49.8 in December 2024. In the context of declining both output and new orders, manufacturing companies responded by cutting human resources and reducing inventories. However, companies still maintained an optimistic outlook on output for the year. More than 36% predicted that the output would increase in the next 12 months according to the S&P Global survey.