The ASEAN manufacturing PMI reached 53 in November, the third-highest level on record, signaling solid expansion driven by strong growth in new orders and output. Purchasing activity improved, but hiring remained largely stagnant, leading to a record accumulation of backlogs. Rising input costs also pushed manufacturers to adjust output prices, while international orders declined. Business sentiment stayed positive but cautious. The survey covers seven economies, representing 98% of ASEAN’s manufacturing output.

The ASEAN manufacturing PMI continued to show a clear recovery in November, with S&P Global reporting a reading of 53, up from 52.7 in October and marking the third-highest level in the survey’s history. This result reflects strong expansion in regional manufacturing activity, supported by a rapid increase in both new orders and output, among the fastest rates ever recorded.

Manufacturers also boosted their purchasing activity sharply, reaching the highest level since March 2024 and extending the current expansion streak to a fourth consecutive month. However, employment levels showed little improvement, despite a slight rise for the third month in a row. Limited hiring amid a surge in new workloads led to a record buildup in backlogs, highlighting the most significant capacity pressures recorded to date.

Input costs across ASEAN rose at the fastest pace in nearly a year, prompting producers to raise output prices. Nevertheless, overall inflation in the region remained low by historical standards. A notable divergence was observed between domestic and foreign demand: while total new orders increased, international orders declined.

Business confidence for the next 12 months remained positive across the region but showed no improvement compared to October and stayed below the long-term average, indicating continued caution among manufacturers regarding growth prospects.

According to S&P Global, ASEAN’s manufacturing sector is showing strong momentum heading into the final quarter, with clear improvements in output and market demand. However, the cautious outlook and restrained hiring decisions suggest firms remain alert to underlying risks.

The S&P Global PMI survey covers seven ASEAN economies, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam, representing roughly 98% of the region’s total manufacturing value added.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam