Asia driving global manufacturing recovery, India among leaders

New Delhi, Nov 5 (IANS) Global manufacturing activity increased momentum in October, driven by Asian economies, with India, Thailand, and Vietnam showing significant improvements, a new report said on Wednesday.

India topped the global manufacturing rankings again, with the HSBC manufacturing PMI increasing to 59.2 in October from 57.7 in September, driven by festive demand and GST rate rationalisation, according to S&P Global survey data.

Data from S&P Global showed that Asia’s manufacturing PMI (ex-China and Japan) reached a 14-month high to 52.7, signalling stronger recovery momentum despite ongoing trade frictions and geopolitical uncertainty.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said that Asia Thailand achieved its strongest PMI reading since May 2023 and Vietnam its highest since July 2024 as producers in these economies reported a thawing of concerns over the impact of US tariffs.

Thailand’s PMI increased to 56.6 from 54.6, while Vietnam’s rose to 54.5 from 50.4, driven by a rebound in new orders and export demand.

Regarding, India''s performance, the firms said that it is the fifth time in seven months that the index has remained above 58, highlighting the sector’s resilience despite global headwinds

The increase stemmed from quicker growth in new orders and factory output at the beginning of the third financial quarter, driven by boost in advertising and recent GST reforms, the report said.

A reading above 50 indicates economic expansion, while one below 50 shows contraction in the manufacturing, services, or construction sectors.

China's PMI declined to 50.6 from 51.2 due to falling export orders, while the US and Eurozone continued moderate expansion or flat conditions, with the US PMI increasing to 52.5 and the Eurozone at 50, it added.

“If new orders continue to rise sharply as they have done in the latest survey period, and price pressures stay subdued, we can expect the ASEAN manufacturing sector to sustain its current level of growth as we conclude the year,” said Maryam Baluch, economist, S&P Global Market Intelligence about ASEAN manufacturers.

--IANS

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