Southeast Asian manufacturing activity rebounded in July, as new orders and production growth accelerated to their fastest pace since the onset of the Middle East conflict. S&P Global data released on Monday showed the region's manufacturing Purchasing Managers' Index (PMI) rose to 52.8 in July, up from an 11-month low of 50.5 in June, further solidifying its position above the 50-threshold that separates expansion from contraction.

The data revealed that companies increased their purchasing activities and hired more workers. Business confidence strengthened, with manufacturers' optimism regarding production growth reaching its highest level in over three years. Thailand led the charge in Southeast Asia with a reading of 54.2, followed closely by Vietnam at 52.9. All ASEAN economies recorded expansionary readings, except for Myanmar, which posted a figure of 49.3.

Southeast Asian manufacturing activity accelerated its growth rate in July. Maryam Baluch, an economist at S&P Global Market Intelligence, commented, "The ASEAN manufacturing sector appears to have moved past the weak period seen between March and June, when operations were still heavily impacted by the ongoing conflict in the Middle East." She added, "The current performance is comparable to the turn of the year but weaker than the historical record level set in February."

Meanwhile, major manufacturing hubs in East Asia also saw their PMIs firmly above the 50-mark in July. Factories indicated that the easing of tensions in the Middle East, coupled with sustained demand for AI-related electronic products, fueled the growth in new orders.