ASEAN’s manufacturing
sector showed signs of slowing in March, as the S&P Global ASEAN
Manufacturing PMI fell to 51.8 from a record high of 53.8 in February, marking the weakest performance since
September. Although the index remained above the 50
threshold—indicating continued expansion for a ninth consecutive month—the
decline suggests a loss of momentum across the seven economies surveyed, which
account for about 98% of the region’s manufacturing value
added. Both output and new orders continued to grow but at a slower pace, with
new export orders contracting during the month.
sector showed signs of slowing in March, as the S&P Global ASEAN
Manufacturing PMI fell to 51.8 from a record high of 53.8 in February, marking the weakest performance since
September. Although the index remained above the 50
threshold—indicating continued expansion for a ninth consecutive month—the
decline suggests a loss of momentum across the seven economies surveyed, which
account for about 98% of the region’s manufacturing value
added. Both output and new orders continued to grow but at a slower pace, with
new export orders contracting during the month.
In response to softer
demand, manufacturers scaled back expansion plans, with only marginal increases
in purchasing activity and employment. Firms also reduced finished goods
inventories for the first time since November, while input costs rose at the fastest
pace since October 2022, prompting the sharpest increase
in output prices in three years. Business confidence for the year ahead
remained positive but eased to a four-month low. According to an economist at
**S&P Global Market Intelligence, the March data may reflect early impacts
of Middle East conflicts on ASEAN economies through demand, production, and
sentiment channels.Click!
demand, manufacturers scaled back expansion plans, with only marginal increases
in purchasing activity and employment. Firms also reduced finished goods
inventories for the first time since November, while input costs rose at the fastest
pace since October 2022, prompting the sharpest increase
in output prices in three years. Business confidence for the year ahead
remained positive but eased to a four-month low. According to an economist at
**S&P Global Market Intelligence, the March data may reflect early impacts
of Middle East conflicts on ASEAN economies through demand, production, and
sentiment channels.Click!
May 14, 2026
