Asia’s factories faced another difficult month in October as weak demand from the United States and ongoing tariff pressures slowed production across the region. According to new business surveys released Monday, several of the region’s major manufacturing hubs, including China and South Korea, reported lower factory orders and weaker output.
Despite limited progress in trade talks during President Donald Trump’s recent visit to Asia, exporters remain cautious about future demand from the US. Private-sector purchasing managers’ indexes (PMIs) for October indicated that manufacturing growth slowed in China and fell in South Korea. Both countries also recorded declines in export orders.
China’s factory activity continued to contract for the seventh consecutive month, confirming that the earlier export rush to avoid tariffs has faded. “The PMIs suggest that China’s economy lost momentum in October, with slower growth across manufacturing and construction,” said Zichun Huang, China economist at Capital Economics. He added that while some short-term recovery is possible, the overall outlook remains weak.
In South Korea, factory output dropped as exporters struggled to secure new orders amid global trade uncertainty. Analysts said the trade deal announced last week between Seoul and Washington, which reduced some US tariffs on Korean goods, offered limited relief for now.
Trump and Chinese President Xi Jinping agreed during their meeting in South Korea to delay new reciprocal tariffs for one year, signaling cautious optimism. However, experts warned that the agreement does little to bridge the deeper economic divide between the two powers.
Elsewhere in Asia’s factories, Malaysia and Taiwan also reported continued declines in production. In contrast, Vietnam and Indonesia saw a modest improvement in manufacturing activity, supported by growing domestic demand.
Economists believe that Asia’s factories will need stronger global demand and stable trade relations to regain momentum in the coming months, as persistent tariffs and geopolitical uncertainty continue to weigh on regional growth.
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