Asia’s manufacturing sector saw limited growth in October, with weak domestic and global demand impacting activity across Japan, South Korea, Indonesia, and Malaysia, according to recent PMI data. Despite China’s manufacturing rebounding due to government stimulus measures, it had minimal impact on the region. China’s Caixin/S&P Global PMI rose to 50.3 in October from 49.3 in September, marking growth after months of contraction, and signaling stabilization in its economy. However, the IMF warns of ongoing risks, including China’s property market instability, rising deflation concerns, and the need for China to pivot towards a consumption-driven economy for sustained growth.
In contrast, Japan’s PMI fell to 49.2, marking the steepest contraction in three months, while South Korea’s PMI stagnated at 48.3, experiencing its sharpest output drop in 16 months. Both nations are affected by slowing demand in the US, Europe, and China. Other regional economies had mixed results, with Taiwan and Vietnam experiencing growth, while Indonesia and Malaysia saw declines. As trade tensions with the US remain a looming threat, policymakers face challenges in supporting sustained recovery amid rising economic uncertainties.
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