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Asia’s factory activity weakened in September due to soft Chinese demand and global economic uncertainty, according to private surveys. This poses a challenge for the region’s manufacturers, putting pressure on policymakers to support their economies. However, hopes for relief are on the horizon with China’s recent stimulus measures, such as lowering Interest rates and injecting liquidity into the banking system.
In Japan, factory activity contracted in September, while Taiwan saw a slower pace of expansion, reflecting the impact of weakened global demand on Asian exporters. South Korea also felt the effects of slowing U.S. growth, with export growth decelerating in September.
China’s manufacturing sector struggled in September, with the Caixin/S&P Global manufacturing PMI dropping to 49.3 from 50.4 the previous month. Similarly, Japan’s manufacturing sector remained below the growth threshold, with the au Jibun Bank Japan PMI at 49.7 in September.
Taiwan reported a PMI of 50.8 in September, down from 51.5 in August. Meanwhile, manufacturing activity declined in Vietnam, Malaysia, and Indonesia.
The International Monetary Fund expects a soft landing for Asia’s economies, with growth projected to slow to 4.5% this year and 4.3% in 2025. This moderation in growth could allow central banks to ease monetary policies to support economic expansion.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.
