ASEAN Manufacturing Shows Slight Improvement Amidst Global Challenges

ASEAN Manufacturing Sector Shows Signs of Recovery in May KUALA LUMPUR, MALAYSIA – June 4, 2025 – The ASEAN manufacturing sector experienced a modest uptick in May, according to the latest S&P Global Purchasing Managers' Index (PMI). The PMI, a key indicator of manufacturing activity, rose to 49.2 in May, up from 48.7 in April. While this indicates expansion, it's important to note that several key sub-indices remained in contraction territory. "Output, new orders, employment, and input inventories all recorded declines," stated the S&P Global report. Despite this, the report also highlighted a positive development: "Cost pressures have eased, with companies only slightly increasing charges." This suggests that while demand remains weak, businesses are adapting to the challenging environment. The slight improvement in the PMI is attributed in part to lower output, allowing companies to better manage their workloads and inventory levels. However, challenges remain, particularly regarding vendor performance. "The decrease in vendor performance is due to extended input delivery times after a period of stability," the report explains. This highlights ongoing supply chain disruptions. Looking to the future, S&P Global anticipates a more optimistic outlook for the ASEAN manufacturing sector in the coming year. While the current situation remains weak, the easing of cost pressures and the sector’s ability to adapt to reduced demand offer a glimmer of hope for future growth. The resilience of ASEAN manufacturers in the face of persistent global economic headwinds is noteworthy. Their ability to adapt and adjust to changing market conditions suggests a potential for stronger performance in the months and years to come.