Asia factory activity slumps in March

Factory activity in many Asian economies weakened in March, with some exceptions in China and South Korea, as reported by Reuters on Monday, citing surveys and data.

China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) rose to 51.1 in March, the fastest pace in 13 months, while South Korea’s exports increased by 3.1 per cent year-on-year in March.

However, manufacturing activity remained weak in Japan, Taiwan, Malaysia, and Vietnam. The overall outlook for Asia’s economy remains uncertain, with challenges in global demand and potential interest rate cuts by the US Federal Reserve.

The International Monetary Fund (IMF) forecasts a 4.5 per cent growth for Asia’s economy in 2022, with varying growth rates across different countries.