Asia’s factory demand eases amid China’s faltering recovery and global trade slump

Factories across Asia experienced further decline in demand during May, as China‘s sluggish recovery impacted a region already grappling with a global trade downturn. Taiwan’s purchasing managers indexes (PMI) dropped to 44.3 from 47.1 in April, while Vietnam recorded its lowest reading since September 2021, according to S&P Global. South Korea’s factory gauge saw a slight increase in May, though it remained in contraction territory.

Japan’s factory activity, however, reversed a decline for the first time since October 2022, with the au Jibun Bank Japan Manufacturing Purchasing Managers’ Index rising to 50.6 from 49.5 in April. This was a rare exception among Asian markets, as new orders and output fell in most countries.

The data largely supports the bleak economic outlook from China, where manufacturing activity slipped further into contraction last…