Global Manufacturing Improves, Indonesia Leads ASEAN Expansion

S&P Global's Manufacturing PMI showed a slight improvement, rising from 50 in January to 50.3 in February. The breaching of the 50 neutral levels was a notable shift, indicating a move from contraction to expansion, albeit by a small margin.

The production index reached a nine-month peak, indicating a resurgence and building upon the slight growth in January. Additionally, new orders increased for the first time in 20 months, supported by a stabilization in global export orders, which experienced one of the smallest declines in two years.

"These data suggest a potential recovery in the manufacturing sector from the prolonged downturn of the past eighteen months," wrote Chris Williamson, Chief Business Economist at S&P Global Market Intelligence Williamson, in his latest analysis article, Mar 1.

In the ASEAN region, the PMI was slightly up to 50.4 in February from 50.3 in January. However, there was still no growth in new orders for manufacturers, with decreased customer demand observed in Thailand, Myanmar, and Malaysia. According to the data, overseas demand for ASEAN goods remained weak in February, marking 21 consecutive months of contraction.