Asian factories sputter as China's demand weakens

In January 2024, Asian factories faced a mixed performance, with varying outcomes across the region.

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China’s private Caixin/S&P Global manufacturing purchasing managers’ index (PMI) remained at 50.8, indicating steady growth and surpassing the 50-point threshold that separates expansion from contraction. However, an official survey revealed that manufacturing activity in China contracted for the fourth consecutive month, with deflationary pressures persisting, signalling underlying weaknesses in demand. This has fuelled expectations for additional policy support measures in

China throughout the year. The Asian economic land scape exhibited disparities, with South Korea experiencing a positive turn as its factory activity expanded for the first time in 19 months. This growth was attributed to increased demand for goods in key markets, including the