ASIA: ASEAN Manufacturing Grew Through 2024, Indonesia Returns To Growth

The ASEAN S&P Global manufacturing PMI was little changed at 50.7 in December down from November’s 50.8. The region remains mixed with Malaysia and Vietnam recording contractions in activity, while Thailand and the Philippines continue to grow and Indonesia posted its first positive since June.

• S&P Global notes that the ASEAN PMI was above 50 through 2024 and it averaged 51.0 in 2024, signalling modest growth over the year. Output and orders continued to grow in December, however export orders contracted again, and price pressures eased. Firms remained optimistic regarding the year ahead but at the lowest level for eight months.
• Indonesia’s manufacturing sector returned to growth in December with the PMI up to 51.2 from 49.6, the highest since May, driven by orders (domestic & foreign), output and employment all rising. The weaker rupiah boosted cost pressures and firms maintained margins by increasing selling prices for the third straight month.
• The Philippines PMI outperformed the rest of ASEAN rising to 54.3, highest since April 2022, from 53.8 driven by a pickup in the rate of growth for orders and output to its highest in almost three years. Foreign orders also rose. Despite this employment levels fell slightly due to efficiency improvements. Costs and output price pressures eased.
• The manufacturing PMI in Thailand also improved rising to 51.4 from 50.2 due to a pickup in orders and output. It also resulted in a drop in inventories. While costs rose marginally, selling price inflation fell slightly. Firms remain positive about the year ahead with the focus on growing export markets and developing new products, according to S&P Global.

ASEAN S&P Global manufacturing PMI