financetom
Economy
financetom
/
Economy
/
Asia's factory activity weakens as US tariffs sap confidence
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Asia's factory activity weakens as US tariffs sap confidence
Mar 31, 2025 8:45 PM

TOKYO (Reuters) - Asia's factory activity mostly weakened in March as an intensifying U.S. tariff war and slowing global demand hurt business sentiment, private sector surveys showed on Tuesday, darkening the outlook for the region's economy.

China was one outlier among a broadly downbeat set of purchasing managers' indexes, showing activity in the world's second-largest economy picking up, as factories rushed to get goods to customers before U.S. tariffs took effect.

The prospect of a widening global trade war is adding to headaches for policymakers as they seek to cushion the hit to growth and manage inflationary pressures from rising costs.

Elsewhere in Asia, Japan, South Korea and Taiwan saw manufacturing activity decline in March, the surveys showed, as companies braced for more uncertainty on U.S. trade policy.

U.S. President Donald Trump has introduced various tariffs against trading partners since taking office in January, including a plan to impose higher levies on auto imports.

China's Caixin/S&P Global manufacturing PMI climbed to 51.2 in March from 50.8 in the previous month, exceeding market expectations and staying above the 50.0 mark that separates growth from contraction.

The rebound broadly aligned with an official PMI released on Monday that showed manufacturing activity growing at its quickest pace in a year.

But analysts expect the relief to be short-lived as the trade war threatens to undermine momentum. Trump has imposed a cumulative 20% tariff on Chinese imports since January and is expected to announce additional "reciprocal" tariffs this week.

"The rise in the Caixin manufacturing PMI mirrored its official counterpart, with both surveys suggesting that China's industrial sector is benefiting from a combination of tariff front-running and fiscal support," said Julian Evans-Pritchard, an economist at Capital Economics. "It won't be long before U.S. tariffs turn from being a tailwind to being a drag, however."

Japan's factory activity fell at the fastest pace in a year, its PMI showed and extended declines for a ninth straight month.

South Korea's factory activity declines also sped up, hit by weak domestic demand.

Taiwan's PMI fell to 49.8 in March from 51.5 in February, while that for Vietnam rose to 50.5 from 49.2.

Other indicators on Tuesday showed softness across the region with South Korea's exports growing slower than expected and Japan's closely watched tankan survey showing big manufacturers' business sentiment hitting a one-year low.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed's Barkin says latest CPI data shows price pressures continue to ease
Fed's Barkin says latest CPI data shows price pressures continue to ease
Jan 15, 2025
ANNAPOLIS, Maryland (Reuters) - U.S. inflation data for December indicates price pressures are continuing to ease, Richmond Federal Reserve President Thomas Barkin said on Wednesday after a government report showed that an important underlying measure of price increases had slowed last month. The Consumer Price Index report for December continues the story we have been on, which is that inflation...
Dec CPI rises a touch above expectations, keeps Fed on track
Dec CPI rises a touch above expectations, keeps Fed on track
Jan 15, 2025
NEW YORK (Reuters) -U.S. consumer prices increased slightly more than expected in November as energy costs rose, pointing to an inflation trend that lines up with the Federal Reserve's view for a slower path of rate cuts this year. The consumer price index rose 0.4% last month after climbing 0.3% in November, the Labor Department's Bureau of Labor Statistics said...
Inflation Rises To 2.9% In December: Core Slows, Yet Rising Energy Costs Put Fed's Target At Risk
Inflation Rises To 2.9% In December: Core Slows, Yet Rising Energy Costs Put Fed's Target At Risk
Jan 15, 2025
Consumer inflation surged for the third straight month in December, rekindling concerns that the months-long cooling of price pressures could be over and casting doubt on the Federal Reserve’s ability to steer inflation toward its 2% target. The headline Consumer Price Index rose 2.9% year-over-year in December, according to Wednesday’s data from the Bureau of Labor Statistics. This marks an...
US consumer prices rise slightly above expectations in December
US consumer prices rise slightly above expectations in December
Jan 15, 2025
WASHINGTON (Reuters) - U.S. consumer prices increased slightly more than expected in December amid higher costs for energy goods, pointing to still elevated inflation that aligns with the Federal Reserve's projections for fewer interest rate cuts this year. The consumer price index rose 0.4% last month after climbing 0.3% in November, the Labor Department's Bureau of Labor Statistics said on...
Copyright 2023-2025 - www.financetom.com All Rights Reserved