Global manufacturing activity rebounded in October, led by strong performances in Asian economies such as India, Thailand, and Vietnam. Data from S&P Global indicated that Asia’s manufacturing PMI (excluding China and Japan) reached a 14-month high, reflecting a stronger recovery despite trade and geopolitical challenges.

India Gains Global Lead

India maintained its position at the top of global manufacturing rankings. The HSBC Manufacturing Purchasing Managers’ Index (PMI) rose to 59.2 in October from 57.7 in September, boosted by festive-season demand and government GST rate rationalisation.

This marks the fifth time in seven months that India’s PMI has remained above 58, underscoring the sector’s resilience despite global headwinds. A reading above 50 signals expansion.

Thailand and Vietnam Gain Ground

Manufacturing momentum also strengthened in other Asian economies. Thailand’s PMI climbed for the sixth straight month to 56.6 in October, up from 54.6 a month earlier — its sharpest improvement since May 2023.

Vietnam’s PMI jumped to 54.5 from 50.4, hitting a 15-month high driven by rising new orders and export demand. Collectively, the ASEAN manufacturing PMI rose to 52.7, the joint-highest level in over three years, pointing to broad-based improvement across the region.

China, Japan, South Korea Lag Behind

Not all Asian economies shared in the upturn. China’s PMI slipped to 50.6 in October from 51.2 in September, hampered by weaker export orders. South Korea’s manufacturing output also slowed due to soft domestic demand and the impact of US tariffs.

Japan’s PMI eased slightly amid subdued external demand and supply-chain disruptions in key export sectors.

US and Europe Stabilise

In the United States, manufacturing activity remained in expansion mode, with the PMI increasing to 52.5 in October — the fastest pace of new order growth in 20 months.

The Eurozone remained largely flat, with its PMI inching up to 50, while the United Kingdom’s PMI improved to 49.7 from 46.2, indicating a slower contraction.

Trade Slows, Optimism Endures

Despite India’s robust factory performance, export orders softened in October. A similar trend was observed across most Asian economies, including Thailand, China, Japan, and South Korea, while Vietnam stood out as the only major economy to record a rise in new export orders.

Globally, export demand stayed weak as both the US and Eurozone reported declines in new export orders, coupled with a dip in business confidence.

(Source: Moneycontrol)