Wedoany.com Report-Dec.1, November data confirmed that the ASEAN manufacturing sector maintained solid expansion momentum through the end of 2025. The S&P Global ASEAN Manufacturing PMI increased from 52.7 in October to 53.0 in November, reaching the third-highest level since the index began, behind only October 2021 and September 2022.

The improvement reflected markedly faster growth in both output and total new orders, with the rates of increase ranking among the strongest on record. Domestic demand remained the primary driver of sales growth, while new export orders returned to modest contraction after a brief rise in the previous month.

To meet rising production requirements, companies stepped up input purchases for the fourth straight month, recording the fastest pace of buying activity since March 2024. Greater purchasing volumes signalled improved confidence in supply-chain conditions. Employment, however, continued to expand only marginally despite three consecutive months of job gains, leaving many firms short-staffed relative to current workloads.

Consequently, outstanding business volumes rose at the sharpest rate in the survey's history, underlining widespread capacity constraints across the region. On the price front, average input costs increased sharply in November—the quickest rise in nearly a year—leading manufacturers to raise factory-gate prices accordingly. Overall inflationary pressures nevertheless stayed moderate by historical standards.

Business confidence toward the 12-month outlook remained clearly positive yet below the series long-term average, indicating a degree of caution despite the strong performance in recent months.

Maryam Baluch, economist at S&P Global Market Intelligence, said: "The ASEAN manufacturing industry has indicated a robust final quarter of the year till now, with data for November showcasing strong output and new order growth. Supporting the increased production requirements, firms also indicated a stronger intake of inputs.

"Despite the overall positive performance of the sector, there were some areas of concern. While confidence remains strongly positive, it is still below the historical average, suggesting a relatively cautious outlook for growth in the coming months. This sentiment is also reflected in firms'decisions regarding employment expansion, which has been marginal at best during the current three-month sequence of job creation. Consequently, this has led to manufacturing firms accumulating backlogs at the strongest rate in the series' history. Additionally, price pressures intensified in November, which may present challenges to future growth."