BANGKOK: Southeast Asia’s manufacturing sector rebounded in July, as growth in new orders and production accelerated to their fastest pace since the conflict in the Middle East began.
The region’s manufacturing purchasing managers’ index (PMI) rose to 52.8 in July from the 11-month low of 50.5 it posted in June, moving further above the 50-point threshold that separates expansion from contraction, according to S&P Global on Monday.
Firms increased purchasing activity and employment, the data showed. Business confidence strengthened, with manufacturers the most optimistic about production growth in over three years.
Thailand led Southeast Asia with a reading of 54.2, followed by Vietnam at 52.9. All Asean economies posted expansionary readings except Myanmar with a print of 49.3.
“The Asean manufacturing sector appears to have moved past the softer patch seen between March and June, when activity was still heavily affected by the ongoing conflict in the Middle East,” said Maryam Baluch, economist at S&P Global Market Intelligence.
“Performance in now on par with that seen at the turn of the year, but softer than the record-level seen back in February,” she added.
Meanwhile, the PMI of major manufacturing hubs in North Asia remained firmly in above-50 territory in July. Factories cited an easing of Middle East tensions and the continued demand for AI-related electronics for the rise in new orders.
The latest data out of Asia is in contrast with the readings in China, where factory activity unexpectedly contracted in July. The country’s official manufacturing PMI came in at 49.2 on Friday, falling short of all estimates in a Bloomberg survey of economists, whose median was 50.1.
