Asian manufacturing sectors, including China’s, showed tentative signs of recovery in August, with chip makers benefiting from strong demand, according to private surveys. China’s Caixin/S&P Global manufacturing PMI rose to 50.4, indicating slight growth, while official data still pointed to a decline. However, the broader economic outlook remains uncertain due to potential US interest rate cuts, slower US growth, and the upcoming US presidential election.
South Korea and Taiwan also saw manufacturing expansion in August, supported by strong global demand for semiconductors. Japan’s manufacturing contraction slowed, aided by a rebound in car production. Conversely, Malaysia and Indonesia experienced contractions, reflecting ongoing challenges from China’s economic slowdown.
Despite some positive developments, the region’s manufacturing outlook remains clouded by China’s sluggish economy and potential further slowing of US demand, which could exacerbate difficulties for Asian economies. The varied performance across countries highlights the mixed impact of global and regional economic conditions on Asian manufacturing sectors.
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