"ASEAN's manufacturing sector" recovered after four months, with Vietnam and Thailand leading the way. However, businesses remain cautious about hiring amid risks from war, inflation, and global trade turmoil.
On June 2, 2569, at 09.59:3 AM, Bloomberg News reported that Southeast Asia's manufacturing sector rebounded strongly in May after three consecutive months of slowdown, driven by increased domestic demand which offset the impact of weak exports.
Data from S&P Global indicates that the ASEAN Manufacturing Purchasing Managers' Index (PMI) rose to 51.5 in May from 50.7 in April, remaining above the 50 mark, the dividing line between expansion and contraction. This indicates strong new orders from factories in the region, enabling manufacturers to increase production capacity to meet market demand.
Among ASEAN member countries, Vietnam performed the most outstandingly, with a PMI index of 52.8, the highest in the region, followed by Thailand at 52.6, reflecting the continued recovery of the manufacturing sector.
While the Philippines and Indonesia remain in expansion zones, Myanmar and Malaysia are still facing contraction, with PMI figures of 49.3 and 49.9, respectively.
However, despite improvements in purchasing and production activity, businesses remain cautious about hiring, with manufacturing employment in the region declining slightly in May.
Maryam Baluch, an economist at S&P Global Market Intelligence, said that manufacturers continue to face uncertainty from the global economic and trade environment, warning that ongoing global trade turmoil, as well as inflationary pressures stemming from the current war, will continue to be factors pressuring manufacturing growth in the coming period.
Despite these challenges, recent data reflects that domestic demand remains a key driver supporting ASEAN's manufacturing sector and promoting the region's economic recovery amidst global economic uncertainty.
Reference: www.bloomberg.com
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