ASEAN’s manufacturing sector regained momentum in May 2026, with the region’s Manufacturing Purchasing Managers’ Index (PMI) rising to 51.5 from 50.7 in April, marking the strongest reading in three months and extending the expansion streak to eleven consecutive months.

The improvement was primarily driven by robust growth in domestic demand, which helped offset continued weakness in export orders amid ongoing global trade disruptions. The latest data suggests that ASEAN manufacturers remain resilient despite external economic uncertainties.

Among ASEAN member states, Vietnam and Thailand emerged as the region’s strongest performers. Vietnam recorded a PMI of 52.8, while Thailand followed closely at 52.6, reflecting strong industrial output and increased manufacturing activity. The Philippines and Indonesia also maintained positive growth momentum, whereas Malaysia and Myanmar remained in contraction territory.

The continued expansion of manufacturing activity highlights ASEAN’s growing role as a global production hub. Rising investments in electronics, semiconductors, automotive manufacturing, data centers, and industrial infrastructure are creating new opportunities across the region.

For the HVAC, refrigeration, cleanroom, and industrial facility sectors, the manufacturing upturn signals sustained demand for energy-efficient cooling systems, ventilation solutions, environmental control technologies, and clean production environments. As more industrial projects and advanced manufacturing facilities are developed across Southeast Asia, demand for high-performance climate control and contamination control solutions is expected to grow accordingly.

Although inflationary pressures, supply chain delays, and geopolitical uncertainties continue to pose challenges, business confidence across the region improved in May, with manufacturers expressing greater optimism about production prospects over the next twelve months.

The latest PMI figures reinforce ASEAN’s position as one of the world’s most dynamic manufacturing regions and highlight the long-term growth potential for industries supporting industrial development and sustainable production.