ASEAN PMI hits 52.8 in January as output surges to 3-year high

Output and confidence rise, but price pressures cloud outlook.

The ASEAN manufacturing sector continued to perform strongly in January, with the current growth trajectory expected to persist throughout 2026 as business confidence rose to its highest in nearly 3 years.

The S&P Global Purchasing Managers’ Index for the region rose to 52.8 in January from 52.7 in December, expanding for the seventh consecutive month.

This points to a solid improvement in operating conditions, driven by sharp output growth and the highest level of business confidence in 33 months, S&P Global said.

Production growth reaccelerated in January to match levels seen in November 2025, marking the joint-fastest expansion in nearly three years.

Whilst new order growth remained strong, the pace of expansion moderated to a four-month low. The sustained influx of new work led firms to build up backlogs further amidst a slowdown in demand momentum.

Manufacturers also recorded the longest stretch of continuous job creation since 2018, with January marking the fifth consecutive month of rising employment, although the rate of hiring slowed to a marginal level.

Firms increased purchasing activity at the sharpest rate since April 2023 to support higher production requirements, the report said.

Price pressures intensified at the start of the year, as input cost inflation accelerated to a 14-month high, nearing the long-run series average.

Manufacturers responded by raising selling prices at the fastest rate in 14 months, according to the report.

S&P Global also warned that persistent price increases could pose a risk to the regional growth outlook if they continue to build in the coming months.