Mixed Signals in Asian Manufacturing Sector Amid Economic Challenges
China's factory activity shows divergence in private and official data, while South Korea sees growth and Japan continues to contract.
- China's factory activity expanded in January for the third consecutive month, according to the private Caixin/S&P Global manufacturing purchasing managers' index (PMI), which stayed at 50.8, unchanged from December.
- However, an official survey showed that China's manufacturing activity contracted for the fourth straight month, indicating an underperforming economy in need of more policy support.
- South Korea's factory activity expanded in January for the first time in 19 months due to improved demand for goods in key markets such as the United States and China.
- Manufacturing activity in Japan shrank for an eighth straight month in January as output and new orders slumped.
- The International Monetary Fund revised up its growth forecast for Asia to project an expansion of 4.5% this year, driven by robust US demand and expected stimulus measures in China.