Private surveys show manufacturing activity contracted across Asia in July, with PMI figures falling below expansion territory in China, Japan, and South Korea. India and several ASEAN nations remain outperformers amid subdued export demand.
1. July PMI Snapshot
- China S&P PMI: 49.5
- Japan: 48.9
- South Korea: 48.0 New orders and business sentiment declined notably, signaling waning momentum in export and domestic demand cycles.
2. Regional Divergence
India led the positive side with expansion, while Indonesia, Malaysia, Taiwan, and the Philippines posted weakness. Business confidence dropped to multi‑year lows across the region.
3. Underlying Drivers
Trade uncertainty from rising U.S. tariffs, sluggish commodity demand, and tightening global financial conditions weighed on manufacturers. Many firms scaled back operations ahead of expected headwinds.
Editor’s Note
Asia’s recovery remains fragile. Only policy clarity and trade normalization can deliver a sustained turnaround in industrial activity.
Tags: asia‑pmi, global‑trade‑uncertainty, manufacturing‑contraction, business‑confidence