NextFin news, Manufacturing activity across Asia showed a divided picture in September 2025, as South Korea and Vietnam demonstrated resilience amid ongoing US tariffs, while Taiwan, Japan, Malaysia, and the Philippines experienced contraction or stagnation, according to S&P Global Purchasing Managers' Index (PMI) data released on Wednesday.
South Korea's manufacturing sector improved last month, reflecting stronger export demand and production, while Vietnam, a key US supplier, maintained steady manufacturing activity despite the trade levies. This contrasts with Taiwan and Japan, where manufacturing PMIs remained below the 50-point threshold that separates expansion from contraction, signaling subdued demand and production challenges.
Malaysia also stayed below the 50-mark, indicating contraction, and the Philippines slipped under this level, highlighting regional disparities in manufacturing performance. Meanwhile, Thailand joined South Korea with faster manufacturing activity, and Indonesia's sector slowed but remained in expansion territory.
The divergence in PMI readings comes as the US continues to enforce tariffs introduced during former President Donald Trump's administration, targeting various Asian exporters. These tariffs have affected demand patterns, particularly in Taiwan and Japan, which are significant exporters to the US market.
Despite these challenges, South Korea's export sector held up well in August, serving as an early indicator of regional trade resilience. Similarly, Vietnam's manufacturing steadiness underscores its role as a major supplier to the US, managing to weather the tariff pressures.
The split in manufacturing performance across Asia reflects the complex impact of US trade policies on the region's economies, with some countries adapting better to the tariffs than others. The data suggests that while tariffs have dampened demand in certain markets, others continue to experience growth or stability in manufacturing output.
These findings are based on the latest S&P Global PMI data published on Wednesday, October 1, 2025, and highlight the ongoing economic adjustments in Asia amid evolving global trade dynamics.
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