India surges, China slows in Asia manufacturing turmoil

Asean mfg PMI just managed to edge into expansion zone in July amid global uncertainty

- Rhik Kundu

Manufacturing activity across Asia's export-driven economies showed a mixed picture in July, with early signs of resilience in some markets despite deepening global trade tensions and the US tariffs.

India and Vietnam posted gains, while China's factory momentum softened. Meanwhile, much of Southeast Asia continued to struggle, dragged down by weak external demand and persistent uncertainty around global supply chains.

The S&P Global Asean Manufacturing Purchasing Managers' Index (PMI) edged into expansion territory in July, rising to 50.1 from 48.6 in June, just above the neutral 50 mark that separates growth from contraction.

The divergence reflects broader shifts in global demand, China's ongoing economic challenges, and geopolitical tensions that are beginning to reshape trade flows across Asia.

India's manufacturing sector activity rose to a 16-month high in July on the back of expansion in output and new orders.