ASEAN manufacturing hits 14-month high in September

The ASEAN manufacturing sector posted its strongest improvement in over a year in September, as the S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 from 51 in August. The reading marked the highest expansion since July 2024 and confirmed a modest but broad-based upturn in regional factory activity.

Output and new orders expanded solidly, with demand recording its joint-fastest growth in nearly two-and-a-half years. Purchasing activity also increased at the strongest pace in 13 months. Firms reported renewed hiring for the first time in seven months, though overall job creation remained marginal. Backlogs of work accumulated at the quickest rate in a year, pointing to rising pressure on capacity, S&P Global said in a press release.

Inventories showed mixed trends, with pre-production holdings broadly unchanged, while post-production stocks fell as companies tapped into inventories to meet demand. Input costs rose further, though inflationary pressures stayed historically moderate.

The ASEAN manufacturing sector strengthened in September, with the PMI rising to 51.6 from 51.0 in August, its highest since July 2024, according to S&P Global.
Output and new orders grew solidly, while purchasing activity hit a 13-month high.
Firms resumed hiring after seven months, though modestly, as backlogs surged.
Inventories showed mixed trends and business confidence reached a six-month peak.

Business confidence improved to a six-month high, as manufacturers cited stronger demand conditions and optimism for output growth over the coming year.

“The ASEAN goods-producing sector concluded the third quarter of the year on a strong note, underscored by solid expansions in new orders and output. Additionally, purchasing activity increased, and employment rose for the first time in seven months,” said Maryam Baluch, economist at S&P Global Market Intelligence. “Furthermore, the fresh accumulation of backlogs, coupled with the ongoing reduction of post-production inventories, suggests that manufacturers should have opportunities to further expand their workforce.”

“Although recent data indicates a slight increase in price pressures against a backdrop of easing monetary policy across much of the region and a strengthening demand climate, the rates remain historically muted. This suggests that these pressures are manageable and unlikely to adversely affect demand,” added Baluch.

Fibre2Fashion News Desk (SG)