The Association of Southeast Asian Nations’ (ASEAN) manufacturing sector registered a purchasing managers’ index (PMI) of 51.1, above the no-change 50.0 mark for the 20th successive month in May 2023, signalling a sustained improvement in operating conditions. However, this was down from 52.7 in April, and pointed to only a marginal rate of growth that was weaker than seen on average over the current sequence of expansion.

At the same time, prices pressures abated, while average lead times for inputs were cut for the third straight month. National data highlighted that five of the seven ASEAN constituents saw improvements in the health of their manufacturing sector in May. Leading the upturn for the second consecutive month was Thailand. The 58.2 rate of expansion was softer than April’s record-high, but nevertheless the second-strongest in the S&P Global ASEAN Manufacturing PMI survey’s history, S&P Global said in a press release.

Similarly, manufacturing firms in Myanmar registered slower growth, as the headline figure at 53.0 slipped to a three-month low from the survey-high recorded in April. Nonetheless, the rate of expansion compared favourably against the sub-50.0 reading recorded over the series history.

The Philippines was the only country where the headline index increased in May. At 52.2, manufacturers signalled a modest upturn overall. Singapore at 51.2 and Indonesia at 50.3 both indicated softer improvements in manufacturing conditions in May. While the rate of growth was mild across Singapore, conditions were close to stagnating at manufacturing firms in Indonesia, which saw only a fractional improvement in the health of its manufacturing economy during May.