The Zhitong Finance App noticed that the Southeast Asian manufacturing industry rebounded in July, and the growth rate of new orders and production accelerated to the fastest pace since the Middle East conflict began.
According to S&P Global Monday data, the region's manufacturing purchasing managers' index (PMI) rose from an 11-month low of 50.5 in June to 52.8 in July, further stabilizing above the 50 boom and dry line that distinguishes expansion and contraction.
The data showed that the company increased procurement activities and the number of employees. Business confidence increased, and manufacturers' optimism about production growth reached the highest level in more than three years.
Thailand led Southeast Asia with a reading of 54.2, followed by Vietnam with 52.9. With the exception of Myanmar, which recorded 49.3, all ASEAN economies showed expansionary readings.
Southeast Asian manufacturing activity accelerated in July
S&P Global Market Intelligence economist Mariam Baluch said, “The ASEAN manufacturing industry seems to have gone through a period of weakness between March and June. At that time, business activities were still deeply affected by the ongoing conflict in the Middle East.”
She added: “The current performance is on par with the end of the year, but less than the historical record level set in February.”
Meanwhile, the PMI for major manufacturing centers in East Asia stood steady above 50 in July. The factory said the easing of tension in the Middle East and continued demand for AI-related electronic products have boosted the growth of new orders.