ASEAN manufacturing index slips to 11-month low in May: S&P Global

ASEAN manufacturing growth lost momentum in June, with the S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) easing to 50.5 from 51.5 in May, according to S&P Global data. The reading signalled only a marginal improvement in operating conditions and the weakest upturn since July 2025.The slowdown matters for sourcing and production planners because the two main PMI components softened. Output increased only marginally, matching April as the joint-softest rise in the current 12-month growth run, while new orders also expanded at a weaker pace. New export orders fell strongly and at a faster rate, S&P Global said in a press release.

As per the data collected from June 11-24, 2026, the purchasing volumes rose modestly for an eleventh month, but employment remained weak, with staffing levels down in each month of the second quarter. Supplier delivery times continued to recover, lengthening to the weakest extent in ten months, while stocks of inputs and finished goods were reduced again.

ASEAN’s manufacturing PMI fell to 50.5 in June from 51.5 in May, marking the weakest improvement since July 2025.
New orders and output rose more slowly, while new export orders declined at a faster pace.
Input cost inflation eased notably and selling-price inflation slowed slightly, relevant for sourcing cost discussions.
Confidence slipped to a three-month low, though firms remained

Price indicators offered some relief for buyers and manufacturers. Both input costs and output charges rose at slower rates in June, with cost inflation easing more sharply than selling-price inflation. Confidence in the 12-month production outlook slipped to a three-month low, although firms remained strongly optimistic overall.

Maryam Baluch, economist at S&P Global Market Intelligence said: “The growth seen across ASEAN’s manufacturing sector at the start of the year has slowed in the second quarter, with June marking the smallest improvement in sector health for a year.” She added that weaker momentum in new orders and output drove the slowdown, while easing cost pressures suggested firms were using the opportunity to build margins.

For textile, apparel and retail sourcing teams, the June data point to a mixed ASEAN manufacturing backdrop: slower demand and export momentum, but easing cost pressure and improving delivery-time conditions that may influence near-term buying and production scheduling.

Fibre2Fashion News Desk