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Asia’s Manufacturing Slides Deeper as China PMI Falls to Six-Month Low

Lingering U.S. tariff uncertainty erodes business confidence, preventing export gains from the May truce from sustaining.

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A worker inspects a steel coil on the factory floor at the ArcelorMittal Dofasco steel mill in Hamilton, Ontario, Canada March 12, 2025. REUTERS/Carlos Osorio/File Photo
General view of the city centre skyline showing construction cranes and commercial buildings in Dublin, Ireland, January 25, 2022. REUTERS/Clodagh Kilcoyne/File Photo
Employees work on the automobile assembly line of Renault Trafic vehicles at the Renault Sandouville car factory, near Le Havre, France, March 29, 2024. REUTERS/Sarah Meyssonnier/File Photo

Overview

  • China’s official manufacturing PMI dropped to 49.3 in July, its lowest reading since January and marking continued contraction in factory output.
  • S&P Global’s private-sector PMI for China slipped to 49.5, with new export orders contracting for a fourth straight month despite a 90-day tariff suspension with the United States.
  • South Korea’s factory PMI fell to 48.0 in July, extending a six-month downturn as firms grapple with both domestic weakness and tariff policy doubts.
  • The National Bureau of Statistics attributed part of China’s July slowdown to high summer temperatures, heavy rain and the sector’s traditional off-season.
  • Regional S&P Global surveys show Asia’s factories struggling under soft global demand and the risk of U.S. duties reimposing later this year.