Kuala lumpur:<Text>
Manufacturing conditions across ASEAN showed improvement in December 2025, driven by stronger output, new orders, and rising business confidence, as highlighted by S&P Global's ASEAN Manufacturing Purchasing Managers' Index (PMI).
According to BERNAMA News Agency, S&P Global reported that the ASEAN manufacturing sector concluded 2025 with its strongest quarterly performance in four years, despite a slight easing in growth momentum compared to November. The data indicated a robust overall expansion, even as growth momentum eased slightly with moderated increases in output and new orders. Business sentiment reached a 10-month high.
S&P Global noted that the sector expanded for a sixth consecutive month in December, with the headline PMI decreasing to 52.7 from 53.0 in November, aligning with the October level. Despite the slight dip, the reading reflected sustained improvement in operating conditions and ranked among the highest on record.
The recent improvement was attributed to strong increases in output and new orders, albeit slightly moderated. The downturn in new export orders persisted but softened in December. Purchasing activity rose for the fifth consecutive month as manufacturers focused on sourcing raw materials and semi-manufactured goods, with S&P Global highlighting that the pace of growth was the strongest in over two-and-a-half years.
Employment continued to expand monthly since September, with job creation modest but the fastest since February. Firms also reported longer average supplier lead times for the fourth consecutive month in December, according to S&P Global.
S&P Global remarked on tight supply chains, muted job growth, and increased new business leading to further accumulation of backlogs, although the rate of increase softened from the previous month's survey record. On pricing, input cost inflation rose sharply, matc hing the pace seen in November, while output charge inflation remained unchanged and modest. Both price gauges were weaker than their respective historical averages.
The report concluded that ASEAN manufacturers remained optimistic about the 12-month output outlook, with the degree of confidence improving further since October, approaching the long-run survey average, as noted by S&P Global.
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