ASEAN manufacturing growth accelerates in November to near-record high

Photo: Investing.com

Investing.com – ASEAN manufacturing growth strengthened in November, with the S&P Global ASEAN Manufacturing PMI rising to 53.0 from 52.7 in October, marking the third-highest reading in the survey’s history.

The November PMI indicated robust expansion in the region’s manufacturing sector, driven by accelerated growth in new orders and output. Both metrics showed sharp increases that ranked among the fastest in the series’ history, according to data collected between November 12-24.

Manufacturing firms increased their purchasing activity at the fastest pace since March 2024, extending the current expansion streak to four months. However, employment growth remained minimal despite rising for a third consecutive month.

The limited job creation, combined with strong new business inflows, led to a record buildup in backlogs. Capacity pressures reached the most marked level in the survey’s history, with the seasonally adjusted index rising for the third straight month.

Input costs increased sharply in November at the fastest rate in nearly a year, prompting manufacturers to raise output prices. Despite the increases, inflation rates remained historically subdued.

International orders declined, contrasting with the positive trend in total new orders.

Business confidence for the year ahead remained positive but unchanged from October and below the long-term average, suggesting a cautious outlook.

“The ASEAN manufacturing industry has indicated a robust final quarter of the year till now, with data for November showcasing strong output and new order growth,” said Maryam Baluch, Economist at S&P Global Market Intelligence.

Baluch noted areas of concern despite the overall positive performance:

“While confidence remains strongly positive, it is still below the historical average, suggesting a relatively cautious outlook for growth in the coming months. This sentiment is also reflected in firms’ decisions regarding employment expansion, which has been marginal at best.”

The PMI data covers manufacturing in Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, representing 98% of ASEAN manufacturing value added.