The ASEAN manufacturing sector experienced its most significant growth in seven months during February 2025, as per the S&P Global Manufacturing Purchasing Managers’ Index (PMI). The PMI increased to 51.5 from 50.4 in January, signaling a notable improvement in business conditions across the region.
The surge was driven by stronger output, faster new orders, and rising employment levels. Business confidence also saw a major boost, reaching its highest point in 22 months. Manufacturers responded to increased demand by expanding production capacity, and many reported a rise in purchasing activity.
Despite this growth, cost pressures remained stable, with inflation in output charges remaining modest. The increase in production requirements and anticipated workloads prompted firms to boost employment and purchase inputs, further strengthening the outlook for continued growth. The February report shows that while backlog accumulation persisted, the rate of increase slowed, suggesting better production support measures.
Maryam Baluch, an economist at S&P Global Market Intelligence, attributed the growth to robust demand trends and optimism for the year ahead. This positive outlook, along with stable inflationary pressures, positions the ASEAN manufacturing sector for further expansion in the months to come.
