ASEAN manufacturing growth strong despite softer exports in Dec

The ASEAN manufacturing sector has closed out 2025 on a strong note, recording its best quarterly performance in four years, according to December data from S&P Global.

The S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) remained firmly in expansion territory for a sixth consecutive month in December. The headline index edged down slightly to 52.7 from 53 in November, matching the October reading, but still ranked among the highest levels on record.

Manufacturers reported strong, though slightly moderated, increases in both output and new orders. The contraction in new export orders persisted, reflecting subdued external demand, but the pace of decline softened compared with earlier months, S&P Global said in a release.

Purchasing activity rose for a fifth straight month as firms stepped up sourcing of raw materials and semi-manufactured goods. The rate of expansion was the strongest in more than two-and-a-half years. Employment also continued to grow, extending a hiring streak that began in September, with job creation reaching its fastest pace since February.

Supply chain pressures remained evident, with supplier delivery times lengthening for a fourth consecutive month. Combined with steady inflows of new business and modest hiring growth, this led to further accumulation of backlogs, although the pace of increase eased from November’s survey record.

Cost pressures stayed elevated, with input price inflation broadly unchanged from November, while output price inflation remained modest and below historical averages. Looking ahead, ASEAN manufacturers expressed increased optimism about the 12-month outlook, with business sentiment rising to a ten-month high and moving closer to the long-run average.

“December’s sustained performance contributed to the strongest quarterly results in four years. This persistent accumulation of outstanding orders provides companies with additional scope to expand their workforce numbers in the months ahead. Moreover, price pressures remained historically subdued, and confidence in the outlook for the year ahead also strengthened to a ten-month high. Collectively, these developments suggest that the manufacturing sector is well-positioned as it heads into 2026,” said Maryam Baluch, economist at S&P Global Market Intelligence.

ALCHEMPro News Desk (HU)