Schedule a Call Back
Asia's export powerhouses face manufacturing slump amidst weak demand
Industry News- Sep 04,23
According to manufacturing purchasing managers' surveys released by S&P Global and au Jibun Bank, factories in North Asia witnessed declines in new orders, production, and export sales.
In August, manufacturing activity in Asia's major export-driven economies continued to decline due to persistently weak demand in crucial trade markets, notably China.
According to manufacturing purchasing managers' surveys released by S&P Global and au Jibun Bank, factories in North Asia witnessed declines in new orders, production, and export sales.
Taiwan, a key indicator for global trade, reported a relatively unchanged purchasing managers' index (PMI) of 44.3 last month, compared to 44.1 in July. Meanwhile, South Korea's PMI dropped from 49.4 to 48.9 during the same period. Seoul also reported a discouraging reading on industrial production, revealing a larger-than-anticipated decline in July, marking a prolonged period of output contraction.
Japan's PMI remained stagnant at 49.6, staying below the critical 50 mark that separates expansion from contraction.
Even Southeast Asia, which had been a bright spot until recently, began to experience the negative sentiment affecting its factories. Both the Philippines and Thailand recorded PMIs in the red for the first time since 2021, as they scaled back on new orders due to disappointing demand. Malaysia's PMI remained unchanged at 47.8, while Indonesia was an outlier with the region's highest reading at 53.9.
Despite increasing signs of a soft landing in the US, the latest data suggests that a quick recovery for the region is unlikely. The persistent weakness in goods trade is further compounded by the potential for higher borrowing costs in the US and Europe.
Additionally, China's economic slowdown is significantly impacting export demand in the region, given that many Asian economies rely on China as their primary trading partner. China's manufacturing activity declined for the fifth consecutive month in August, although slight improvements in new orders and output provide some hope that the worst of the factory slump may be easing.
The challenges facing the region are intensifying. Japan is grappling with rising raw material prices and labour costs, while South Korea faces renewed shipping delays and semiconductor shortages, as reported by S&P Global. In Taiwan, companies are becoming more pessimistic about the next 12 months, leading to reductions in inventories and staff numbers in anticipation of a weaker market ahead.
Asia
China
North Asia
Taiwan
South Korea
Japan
Southeast Asia
Philippines
Thailand
Malaysia
Indonesia
US
China economic slowdown
Japan raw material prices
South Korea shipping delays
Taiwan market pessimism
Related Stories
Other Industrial Products
Recycled igus bicycle to be on world tour
To mark the company's 60th anniversary, the lubrication-free and low-maintenance igus:bike will spend 12 months travelling through 16 countries to raise awareness of the ‘circular economy of plast..
Read moreOther Industrial Products
15th Cement EXPO: A Step Forward in Cement Innovation
Cement EXPO 2025, which will be held along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, promises to be bigger, drawing in greater participation, fostering m..
Read morePolicy Regulation
GTRI urges simplified customs duty structure to boost manufacturing and exports
According to GTRI, currently, 85% of tariff revenue is generated from just 10% of tariff lines or product categories, while 60% of tariff lines account for less than 3% of total revenue.
Read moreRelated Products
Heavy Industrial Ovens
INDUSTRIAL SUPPLIES
Hansa Enterprises offers a wide range of heavy industrial ovens.
High Quality Industrial Ovens
INDUSTRIAL SUPPLIES
Hansa Enterprises offers a wide range of high quality industrial ovens. Read more
Hydro Extractor
INDUSTRIAL SUPPLIES
Guruson International offers a wide range of cone hydro extractor. Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
