Southeast Asia’s Factories Ramp Up on Robust Domestic Demand

Southeast Asia’s manufacturing sector snapped a three-month slowdown in May, as a surge in domestic demand helped offset a downturn in exports.

The region’s manufacturing purchasing managers’ index rose to 51.5 in May from 50.7 in April, climbing further above the 50-threshold that separates expansion and contraction. Factories saw a solid increase in new orders, allowing them to ramp up production, S&P Global reported on Tuesday.

Vietnam led the region with a reading of 52.8, followed closely by Thailand at 52.6. The Philippines and Indonesia were also in expansion territory last month, while Myanmar and Malaysia both saw negative readings ...