KUALA LUMPUR, 3 March 2026 (The Capital Post) — Manufacturing activity across the Association of Southeast Asian Nations (ASEAN) hit an unprecedented high in February, driven by robust new orders and a sharp rise in factory output, according to the latest data from S&P Global.
The ASEAN Manufacturing Purchasing Managers’ Index (PMI), a key gauge of industrial health, climbed to 53.8 in February 2026—up from 52.8 in January. This reading marks the strongest expansion in the history of the series, with sustained growth signalling broad-based improvement in regional manufacturing conditions.
Economists note that readings above 50.0 indicate expansion. The February surge reflected one of the most pronounced increases in new orders on record, as both domestic and external demand strengthened. Output also rose at a near-record pace, pointing to renewed operational momentum across ASEAN’s goods-producing sectors.
S&P Global Market Intelligence highlighted that the latest data extended the current expansion sequence to eight consecutive months, underscoring resilience in factory activity amidst evolving global economic conditions. For the first time in four months, new export orders climbed, suggesting improving foreign demand for ASEAN-made products.
“The sharp acceleration in new orders enabled firms to increase production substantially,” said Maryam Baluch, economist at S&P Global. Firms also raised purchasing and hiring activity to meet production needs, while backlogs of work pointed to further potential expansion ahead.
In line with the robust PMI reading, manufacturers expressed high confidence in future output growth, buoyed by stronger demand prospects and improving market conditions.
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Regional Implications
The record PMI performance comes amid strengthening factory activity in several ASEAN economies:
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Philippines manufacturing registered multi-year highs in new orders and output, driven by robust domestic demand.
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Indonesia’s PMI matched the ASEAN peak at 53.8, reflecting strong expansion in production and order books.
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Vietnam saw manufacturing growth accelerate, with output climbing at a four-month high.
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Thailand’s factory sector also reported faster new order growth and higher production.
Despite these positive trends, performance varies within the bloc. For example, Malaysia’s manufacturing PMI eased below the expansion threshold in February, showing signs of contraction after several months of growth.
Outlook
Analysts say the strong ASEAN PMI reading aligns with broader global manufacturing momentum seen in parts of Asia and beyond, where robust demand and improving supply conditions are lifting output. As global economic headwinds persist, the ASEAN bloc’s resilient manufacturing expansion may prove an important driver of economic growth in the first half of 2026. -The Capital Post
