Asia’s Factory Output Grows as Global Demand Stays Firm

Manufacturing activity across much of Asia expanded in January, buoyed by resilient global demand and improving export orders, according to private-sector surveys, easing concerns that the impact of higher US tariffs may be fading.

Export-driven economies such as Japan and South Korea recorded multi-year highs in factory activity, supported by steady demand from major markets including the United States. The surveys point to a brighter outlook for Asia’s manufacturing hubs after months of uncertainty.

China’s factory sector also showed stronger momentum, with private data indicating faster expansion as export orders recovered. This contrasted with an earlier official reading that suggested manufacturing activity had weakened.

The China General Manufacturing Purchasing Managers’ Index rose to 50.3 in January from 50.1 in December, its highest level since October and above the 50-point threshold that separates growth from contraction. Analysts said robust exports helped offset subdued domestic demand and supported China’s overall economic expansion last year.

Japan’s manufacturing PMI climbed to 51.5 in January from 50.0 a month earlier, marking its strongest reading since August 2022. The improvement was driven by solid overseas demand, particularly from the US and Taiwan, alongside rising output and new orders.

South Korea’s PMI also strengthened, rising to 51.2 from 50.1 in December, the highest level since August 2024, reflecting improved export conditions and firmer global demand.

Improving global prospects have underpinned manufacturing growth across the region. Taiwan’s PMI increased to 51.7 in January from 50.9 in December, while Indonesia’s index rose to 52.6 from 51.2.

Factory activity also expanded in Malaysia, the Philippines and Vietnam, suggesting that momentum in Asia’s manufacturing sector is broad-based as global demand remains supportive.