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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

February 19, 2013

Asia still experiencing manufacturing growth

Filed under: China,General,Logistics,Newsletter,Supply Chain Management — admin @ 6:24 am

Manufacturing output in Asia continues to show signs of expansion, according to HSBC’s latest Manufacturing PMI (Purchasing Managers’ Index) reports.

China witnessed a strong growth rate for the third successive month, posting 52.3 in January from 51.5 in December. This is due to its manufacturing economy seeing improving demand from US and European markets.

Another major Asian market, India also reported manufacturing PMI of 53.2 in January. This was, however, the slowest growth rate in three months, down from 54.7 in December. The reading signaled a continued improvement in the market’s manufacturing sector, despite it being slower due to issues with the supply of power in the market.

PMI readings of Taiwan, Vietnam and Hong Kong also showed economic expansion.

Taiwan rose from 50.6 to 51.5 in January, reporting a ten-month high and the fastest expansion rate since March 2012. The increase in purchasing activity could be attributed to the rising demand from clients in China, Europe and the US.

Vietnam rose to 50.1 in January, after a contraction of 49.3 in December. The growth in purchasing activity in the manufacturing sector is in its third successive month, as companies are witnessing a demand improvement from the domestic market.

Hong Kong also reported an 11-month high growth rate of 52.5, up from 51.7 last month. This is because of greater demand in the private sector and improved market conditions. Furthermore, Hong Kong also witnessed a rise in new business from Mainland China.

Yet, Indonesia and South Korea have experienced a contraction in January. The former posted a 49.7 reading in January from 50.7, while the latter fell slightly to 49.9 from 50.1. Indonesia’s decline could be attributed to the scarcity of raw materials while South Korea is suffering from a fall in new orders.

Despite the continued global economic uncertainty, Asia’s economy is still looking somewhat positive in 2013.

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