Manufacturing across Asia weakens in November as global demand slows

The Purchasing Managers’ Index (PMI) for the manufacturing sector fell across Asia in November. A slowdown in global demand and uncertainty about the impact of China’s lockdown measures have put pressure on economic activity.

The sluggish economic outlook for Asia in 2023 stems from the fact that China’s lockdown measures have disrupted international supply chains, fueling fears of a further slowdown in the Chinese economy. Caixin/S&P Global reported that China’s manufacturing purchasing managers’ index fell to 49.4 in November. Although it had risen to 49.4 from 49.2 in October, China’s manufacturing sector has declined for the fourth consecutive month. China’s official manufacturing PMI was 48 in November, down from 49.2 in October.

Japan’s manufacturing purchasing managers’ index fell to 49 in November from 50.7 in October, the first decline since November 2020.

South Korea’s manufacturing PMI was 49.0 in November, up from 48.2 in November but still below 50, marking the fifth consecutive month of contraction in South Korea’s manufacturing sector. In addition, South Korean exports fell 4% year-on-year to $51.91 billion in November. This was the sharpest decline in two and a half years, due to slowing demand in key markets, particularly China. It also includes the slowdown in the semiconductor industry.

Taiwan’s manufacturing PMI came in at 41.6 in November, up from 41.5 in October but still below 50.

Vietnam’s manufacturing PMI fell to 47.4 in November from 50.6 in October, and Indonesia’s manufacturing PMI fell to 50.3 in November from 51.8 in October.

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