Asia's Manufacturing Sector Struggles with Sluggish Demand, Posing Growth Obstacles

Factories in Asia, including China, Japan, South Korea, Malaysia, Taiwan, and Vietnam, reported sluggish demand in July as new domestic and global orders slumped, indicating weak momentum in the global economy. Only India, Indonesia, and the Philippines showed expansion. Falling new orders, bleak employment prospects, and high inventory levels point to subdued factory activity in the coming months. Weak demand has contributed to reduced production costs, potentially alleviating inflationary pressures and leading to looser monetary policy in some emerging Asian economies.