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BUSINESS • 05/01/2026 11:48 AM

ASEAN Manufacturing PMI Improves In December – S&P Global

KUALA LUMPUR, Jan 5 (Bernama) -- Manufacturing conditions across ASEAN improved in December 2025, supported by stronger output, new orders and rising business confidence, according to S&P Global’s ASEAN Manufacturing Purchasing Managers’ Index (PMI).

In a note today, S&P Global said the ASEAN manufacturing sector closed out 2025 with its strongest quarterly performance in four years, despite a slight easing in growth momentum compared with November.

“Although growth momentum eased slightly, reflected in moderated increases in output and new orders, overall expansion remained robust,” it said, adding that business sentiment strengthened to a 10-month high.

S&P Global said the sector expanded for a sixth straight month in December, with the headline PMI easing to 52.7 from 53.0 in November, matching the October level.

“While the reading dipped slightly, it continued to reflect sustained and solid improvement in operating conditions and ranked among the highest on record,” it said.

It said the latest improvement was driven by strong, though slightly moderated, increases in output and new orders, while the downturn in new export orders persisted but softened in December.

Purchasing activity rose for a fifth consecutive month as manufacturers focused on sourcing raw materials and semi-manufactured goods, with S&P Global noting that the pace of growth was the strongest in more than two-and-a-half years.

Employment continued to expand on a monthly basis since September, with job creation modest but the fastest since February.

S&P Global said firms also reported longer average supplier lead times for a fourth consecutive month in December.

“Tight supply chains, muted job growth and increased new business led to a further accumulation of backlogs, although the rate of increase softened from the previous month’s survey record,” it said.

On prices, S&P Global said input cost inflation rose sharply and broadly matched the pace seen in November, while output charge inflation was unchanged and remained modest.

“Both price gauges were weaker than their respective historical averages,” it said.

It added that ASEAN manufacturers remained optimistic about the 12-month output outlook.

“The degree of confidence has improved further since October, moving towards the long-run survey average,” S&P Global said.

-- BERNAMA

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