Beijing: Asia’s manufacturing sector closed 2025 with renewed strength as factory orders improved across several major economies, offering cautious optimism for the start of 2026.
Data from recent purchasing managers surveys show that factory activity in parts of Asia moved back into growth territory in December after months of slowdown. The improvement was mainly driven by stronger export demand and a recovery in technology related industries, especially semiconductors and electronics.
In China, official data showed manufacturing activity returned to expansion in December, ending a long stretch of contraction. New orders increased ahead of the year end holiday season, giving factories a boost and raising expectations for steadier output in early 2026. However, analysts note that domestic demand remains uneven and smaller manufacturers continue to face pressure.
South Korea also saw an improvement in factory conditions, supported by rising export orders, particularly in chips and automobiles. While output growth remained modest, business confidence strengthened as companies looked ahead to better global demand. At the same time, higher input costs emerged as a concern, adding to inflation pressures.
In Taiwan, manufacturing activity benefited from a pickup in global technology demand. Firms reported healthier order books and a more stable outlook after a challenging year marked by weak electronics sales.
Economists say the late year rebound suggests Asia’s industrial sector is entering 2026 on firmer ground than expected. The recovery, however, is still fragile. Ongoing global trade uncertainty, rising production costs and geopolitical tensions continue to pose risks to sustained growth.
Overall, the pickup in factory orders across Asia signals a gradual improvement in the region’s manufacturing health, offering hope that the worst of the slowdown may be over as the new year begins.