ASEAN manufacturing growth improves in May

The region’s PMI rose for the first time in three months as new orders and output strengthened.

ASEAN manufacturing conditions improved at a faster pace in May 2026, supported by stronger growth in new orders and output, according to S&P Global.

The S&P Global ASEAN manufacturing purchasing managers’ index rose to 51.5 in May from 50.7 in April. This kept the index above the neutral 50.0 mark for the 11th straight month and marked its first increase in three months.

The improvement was driven by a solid rise in new orders, with the pace of growth reaching a three-month high. Output also increased at a stronger and moderate pace after only a fractional rise in April.

However, export sales declined for the third consecutive month. S&P Global said the latest drop was solid and the fastest since September 2024.

Purchasing activity also increased in May, broadly in line with output growth. However, supplier delivery times continued to lengthen, although delays were the least severe in nine months.

ASEAN manufacturers also used inventories to meet production needs, leading to further marginal declines in stocks of purchases and finished goods.

Price pressures remained substantial during the month, but both input costs and output charges rose at weaker rates than in April.

Business confidence improved to a four-month high, suggesting manufacturers expect production to continue growing over the next 12 months.

S&P Global economist Maryam Baluch said ASEAN manufacturers saw stronger operating conditions midway through the second quarter, following consecutive monthly slowdowns since February. However, she said trade disruptions and inflationary pressures linked to the current war will continue to weigh on growth.

The survey covered around 2,100 manufacturers across Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. These markets account for 98% of ASEAN manufacturing value added.