ASEAN Manufacturing Sector Grows at Fastest Pace since July 2014

ASEAN’s manufacturing sector grew in April at the quickest pace since July 2014, the latest IHS Markit Purchasing Managers’ Index (PMI) data showed on 5 May. 

The ASEAN Manufacturing PMI is produced by IHS Markit and is based on survey data collected from around 2,100 manufacturing firms from Indonesia, Malaysia, the Philippines, Vietnam, Singapore, Thailand, and Myanmar. Taken together, those seven countries account for an estimated 98 percent of the manufacturing value added in the ASEAN bloc.

In April, manufacturing conditions improved at the fastest rate since July 2014, thanks to the fastest upturn in output since July 2014 and the steepest rise in new orders since May 2013, the PMI index showed.

The headline PMI posted above the neutral 50.0 mark for the second month in a row as it increased from 50.8 in March to 51.9 in April, for the fastest improvement in the health of the ASEAN manufacturing sector since July 2014.

At the same time, business confidence improved further, with manufacturing firms the most optimistic towards the year ahead outlook for output since January 2020, IHS Markit ASEAN Manufacturing PMI found.

Vietnam saw the strongest growth in April, with the headline PMI hitting a near two-and-a-half year high of 54.7, signalling a sharp rate of expansion. Indonesia also posted strong growth, with the PMI of 54.6 reaching the highest since early 2011, and likewise pointing to a marked improvement in overall manufacturing conditions, according to the data.

“Overall, the April PMI data point to a much improved performance for the ASEAN manufacturing sector, with clear signs that the recovery has begun and the sector is beginning to make headway towards recouping any lost ground,” said Lewis Cooper, Economist at IHS Markit, commenting on the survey results.