Singapore: Factory activity across Asia weakened in November despite recent trade agreements with the United States, raising concerns about the region’s economic outlook.
Fresh data from private surveys showed that major manufacturing hubs including China, Japan, South Korea and Taiwan continue to struggle with low orders and weak demand. China’s factory index fell back below the 50 mark, which signals contraction, after a short period of improvement earlier this year. Companies reported that both domestic and overseas demand remained slow, leaving inventories high and production levels low.
Japan and South Korea experienced similar trends. Analysts say businesses are becoming more cautious because of uncertain global spending and slower recovery in retail demand in key export markets.
Meanwhile, the United States recently signed trade deals aimed at easing tensions and improving access for Asian exporters. However, manufacturers say these agreements have not yet led to stronger orders. Many companies continue to face challenges from new tariffs, shifting supply chains and price pressure from global competition.
In contrast, Southeast Asian countries showed more positive momentum. Manufacturing activity in Vietnam, Indonesia and Malaysia expanded as companies continued to shift production away from China and towards these emerging markets. Lower labor costs and government support have helped these countries attract more investment.
India also recorded growth in factory output, but the pace slowed to its weakest level in nine months. Export orders fell sharply due to tariffs from the United States, and business confidence among Indian manufacturers dropped.
Economists say the uneven performance across Asia reflects a changing global trade landscape. While demand for electronics, machinery and consumer goods remains uncertain, some countries are benefiting from diversification in global supply chains.
Experts believe governments in the region, especially in China and Japan, may introduce new measures in the coming months to support businesses and encourage spending. However, many warn that any strong rebound will depend on whether global demand improves in early 2026.
For now, the manufacturing outlook across Asia remains mixed, with some countries adapting to new trade realities while others continue to face slow orders and production cuts.