The haze in the Middle East is gradually clearing, and the soaring demand for AI is driving up orders: Southeast Asia's manufacturing PMI has soared to 52.8.

Notably, Southeast Asia's manufacturing sector rebounded in July, with new orders and production growth accelerating at the fastest pace since the onset of the Middle East conflict. Data from S&P Global on Monday showed that the manufacturing Purchasing Managers' Index (PMI) for the region rose from an 11-month low of 50.5 in June to 52.8 in July, further stabilizing above the 50 mark that separates expansion from contraction. The data revealed that companies increased purchasing activities and employee numbers. Business confidence has strengthened, with manufacturers' optimism regarding production growth reaching its highest level in over three years. Thailand led Southeast Asia with a reading of 54.2, followed closely by Vietnam at 52.9. All ASEAN economies posted expansionary readings except for Myanmar, which recorded 49.3. Southeast Asia's manufacturing activity accelerated in July. Mariam Baluch, an economist from S&P Global Market Intelligence, stated, "ASEAN manufacturing seems to have moved past the sluggish period between March and June, when business activities were still heavily impacted by the ongoing conflicts in the Middle East." She added, "The current performance is comparable to the end of the year, but below the record levels set in February." Meanwhile, the PMI for major manufacturing hubs in East Asia remained solidly above 50 in July. Factories reported that the easing of tensions in the Middle East and continued demand for AI-related electronics drove the growth in new orders.