Manufacturing Activity In Asia Dried Up Last Month

Manufacturing Activity In Asia Dried Up Last Month
Theodora Lee Joseph, CFA

about 1 month ago2 mins

What’s going on here?

Manufacturing activity in Asia shriveled up in October, according to data released on Wednesday

What does this mean?

There are amazing tours of Asia out there: food-themed, city-themed, motorcycle-themed, you name it. But at the moment, a showcase of the region’s economies is proving the most captivating of all. Many Southeast Asian countries saw their economies shrink in October, with industries squeezed by rising costs and lagging orders, according to S&P Global’s manufacturing purchasing managers’ indexes. Japan and South Korea also had little to show off: they scored 48.7 and 49.8 respectively, barely budging from the month before and hanging below the 50-mark that indicates growth. China had no reason to brag either. The world’s second-biggest economy’s start-stop recovery is still making investors nervous, and that stuttering was clear when a private measure of Chinese factory activity dipped unexpectedly.

Asia PMIs

Why should I care?

For markets: 99 problems and the government can’t fix one.

China’s recent data indicates that the government’s supportive policies are still struggling to buoy up the economy. No wonder: Asia’s usually the powerhouse of manufacturing, but trimmed-down demand from cash-strapped US and Europe has left the region twiddling its thumbs. Thing is, the rest of the world will feel the effects if the globe’s engine runs out of steam – and that’s only looking more likely now that inflation-fueling energy prices are on the rise again.

China manufacturing

The bigger picture: There’s no solace on the interwebs.

Asia’s digital economy is slowing down too, with regular customers watching the pennies and cutting back their spending. Case in point: research from Google, Temasek, and Bain & Co. predicts that the amount of money spent online across the region will tick up by roughly half as much as it did last year – the lowest rate in over five years. Combine that with company targets moving further out of sight, and many sectors are seeing their stocks take a tumble.



All the daily investing news and insights you need in one subscription.

Learn More

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG