KUALA LUMPUR: Marginal growth was eked out at the start of 2025 across the ASEAN manufacturing sector as momentum cooled for both output and new orders, leading to a modest and restrained increase in purchasing activity.
On a positive note, after two months of job losses, S&P Global said the employment landscape stabilised, while price pressures continued to cool, with operating costs and charges rising at the weakest rates in 18 and four months respectively.
"The S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) signalled only a modest improvement in the health of ASEAN manufacturing in January, with a reading of 50.4, down from 50.7 in December and the lowest for nearly a year.
"The improvement in operating conditions was highlighted by only slight increases in order book volumes and output. Growth rates in both categories have slowed, with the most recent gains being the weakest observed in their respective current 11- and four-month growth trends,” it said in a note today.
Economist at S&P Global Market Intelligence economist Maryam Baluch said as the year kicked off, the ASEAN manufacturing sector saw modest growth for the 13th month in a row, though this latest improvement was the slowest since February 2024.
"New orders and output both expanded at a softer pace, and the export market continued to
hold back overall sales growth. On the bright side, inflationary pressures eased, and after two months of job cuts, January brought a slight uptick in payroll numbers,” she said.
Meanwhile, S&P Global said the January data revealed a continued easing of inflationary pressures, with input price inflation slowed for the second consecutive month, marking the weakest increase in operating costs since July 2023.
"Output charge inflation also moderated, rising modestly and at the weakest pace seen in four months.
"Lastly, the level of business confidence across ASEAN manufacturers remained broadly unchanged
from that seen in December. While firms anticipate output to rise in the coming 12 months, optimism remained historically subdued,” it added. - Bernama
